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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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