$1$

$2$

$3$

$4$

Required

Complete the spreadsheet to calculate operating leverage. Place formulas in the spreadsheet to allow changes

$6$

to any of the preceding information to be automatically reflected in the income statement and operating leverage.

$7.$

$8$

$($Use cell referencing to select account values. If nothing belongs in a cell, leave it blank.$)$

Spreadsheet Tip

$($Ungraded$)$ You can explore the power of formulas by copying cells A$2$:M$25$ into the scratchpad area below.

$10$ There you will be able to modify the given information $($currently in cells $J2$:$M3)$ and see the resulting changes in the income statement and operating leverage.