3 01:55:37 The following income statement relates to Riley Company for the year: Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income Required: $563,000 (302,000) a. Operating leverage b. Net income 261,000 186,000 $75,000 a. Calculate the magnitude of operating leverage. Note: Round your answer to 2 decimal places. b. Use the measure of operating leverage to determine the amount of net income Riley will earn if sales increase by 5 percent. Note: Round your intermediate calculations to 2 decimal places.

The following income statement relates to Riley Company for the year: Required: a. Calculate the magntude of operating leverage. Note: Round your answer to 2 decimal places. b. Use the measure of operoting leverege to determine the amount of net income Riley will earn if sales increase by 5 percent. Note: Round your intermediate calculations to 2 decimal places