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 Income Statement Variable cost Contribution margin Fixed cost Net income Required: $567,000 (350,000) 217,000 192,000 $25,000 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 6 percent. Note: Round your intermediate calculations to 2 decimal places. a. Operating leverage b. Net income $ 8.68 53