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

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