The Following Income Statement Is Provided for Grant, Inc What Is This Company's Magnitude of Operating Leverage?
A)0

The following income statement is provided for Grant, Inc. $\begin{array}{|l|c|}\hline \text { Sales revenue }(1,500 @ \$ 30 \text { per unit }) & \$ 45,000\\\hline \text { Variable costs }(1,500 @ \$ 14 \text { per unit }) & 21,000\\\hline \text { Fixed costs } &\underline{16,000} \\\hline \text { Net income } & \$8,000 \\\hline\end{array}$
What is this company's magnitude of operating leverage?

A) 0.33
B) 1.31
C) 2.00
D) 3.00