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34. The best way to reduce operating leverage is to: A) Substitute direct materials for direct labor B) Substitute direct labor for automated equipment c) Substitute equity for debt D) Substitute in-house direct labor with outsourced labor Degree of Operating Leverage 35. Buckbeak Corporation had the following income statement for 2014: Sales $50,000 Less variable costs - 28,000 Contribution margin $22,000 Less fixed costs - 16,000 Net income $ 6,000 Buckbeak's 2014 operating leverage is: A) 0.333 B) 2.000 c) 3.667 D) 2.333 81) How many units must be sold each month to earn a monthly operating income of $25,000? A) 833 units B) 2,300 units C) 3,500 units D) Some other amount