The following income statement is provided for Vargas, Inc.

What is this company's magnitude of operating leverage? Show your computation.

***I have already checked existing answers and I need better ideas regarding the matter. PLEASE DON'T JUST COPY PASTE. Thank you.

Sales revenue (2,500 units x $60 per unit) Cost of goods sold (variable; 2,500 units x $20 per unit) Cost of goods sold (fixed) Gross margin Administrative saaries Depreciation Supplies (2,500 units x $4 per unit) Net income 150,000 (50,000) (8,000) 92,000 (42,000) (10,000) 10,000) $30000