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The following income statement is provided for Vargas, Inc. Sales revenue (3,000 units $20.50 per unit) $ 61,500 Cost of goods sold (variable; 3,000 units
The following income statement is provided for Vargas, Inc.
Sales revenue (3,000 units $20.50 per unit) | $ | 61,500 |
Cost of goods sold (variable; 3,000 units $10.50 per unit) | (31,500) | |
Cost of goods sold (fixed) | (4,500) | |
Gross margin | 25,500 | |
Administrative salaries | (6,500) | |
Depreciation | (5,500) | |
Supplies (3,000 units $2.50 per unit) | (7,500) | |
Net income | $ | 6,000 |
What is this company's magnitude of operating leverage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
0.24
0.24
4.25
3.75
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