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The following income statement is provided for Vargas, Inc. Sales revenue (1,600 units $19.10 per unit) $ 30,560 Cost of goods sold (variable; 1,600 units
The following income statement is provided for Vargas, Inc. Sales revenue (1,600 units $19.10 per unit) $ 30,560 Cost of goods sold (variable; 1,600 units $9.10 per unit) (14,560 ) Cost of goods sold (fixed) (3,100 ) Gross margin 12,900 Administrative salaries (5,100 ) Depreciation (4,100 ) Supplies (1,600 units $1.10 per unit) (1,760 ) Net income $ 1,940 What is this company's magnitude of operating leverage?
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