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Homework - Chapter 11 6 Saved Help Save & Exit Submit 6 The following income statement applies to Baird Company for the current year: Income Statement Sales revenue (440 units x $26) variable coat (440 units x $11) Contribution margin Fixed cost Net income $11,440 (4,840) 6,600 3,600 27.77 points 3,00 eBook Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Baird Company will Hint References earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected c-1. Verify your answer to Requirement b by constructing an income statement based on a 15 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. Complete this question by entering your answers in the tabs below Req A and B Req C1 Req C2 Use the contribution margin approach to calculate the magnitude of operating leverage. Afterwards, use the operating leverage measure previously computed for Requirement A to determine the amount of net income that Baird Company will earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations. Round "Operating leverage" to 1 decimal place.) Show less a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Baird Company will earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected c-1. Verify your answer to Requirement b by constructing an income statement based on a 15 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. 27.77 points Complete this question by entering your answers in the tabs below. eBook Req A and B Req C Req C2 Hint Use the contribution margin approach to calculate the magnitude of operating leverage. Afterwards, use the operating leverage measure previously computed for Requirement A to determine the amount of net income that Baird Company will earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations. Round "Operating leverage" to 1 decimal place.) Show less A a. Operating leverage b. Net income times Req A and B Req C1> b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Baird Company will earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 15 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements 27.77 points Complete this question by entering your answers in the tabs below eBook Req C2 Req A and BReq Ci Hint Verify your answer to Requirement b by constructing an income statement based on a 15 percent increase in sales revenue The sales price is not affected. References Sales revenue Variable cost Contribution margin Fixed cost Net income Req A and B