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The following income statement is provided for Vargas, Inc. Sales revenue (1,900 units x $19.40 per unit) Cost of goods sold (variable; 1,900 units *

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The following income statement is provided for Vargas, Inc. Sales revenue (1,900 units x $19.40 per unit) Cost of goods sold (variable; 1,900 units * $9.40 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (1,990 units x $1.40 per unit) Net income $ 36,860 (17,860 (3,400) 15,600 (5,400) (4,400) (2,660) $ 3,140 What is this company's magnitude of operating leverage? Multiple Choice O 0.27 O 5.20 0.20 4.97

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