5 14.28 points Book Print Heferences Brief Exercise 11-4 (Algo) Assessing the magnitude of operating leverage LO 11-4 The following income statement relates to Riley Company for the year. Sales revenue Variable cost Income Statement Contribution margin Fixed cost Net incone Required: $567,000 (315,000) 252,000 182,000 $70,000 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. a. Operating leverage 3.60 b Net income $ 98,350)