Exercise 11-16 Assessing the magnitude of operating leverage LO 11-4 The following income statement applies to Kawai Company for the current year. Income Statement Sales revenue (200 units * $60) Variable cost (200 units X $36) Contribution margin Fixed cost Net income $12,000 7, 200) 4.800 (1.600) $ 3,200 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 Kawal Company will earn if it experiences a 10 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 10 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 Answer is not complete Complete this question by entering your answers in the tabs below. Reg A and B Reg Ci Reg C2 Calculate the percentage change in net income for the two Income statements ct or incorrect for the b. Use the operating leverage measure computed in Requirement a to determine th earn if it experiences a 10 percent increase in revenue. The sales price per unit is no c-1. Verify your answer to Requirement b by constructing an income statement based sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Req c1 Req C2 Verify your answer to Requirement b by constructing an income statement based on a 10 The sales price is not affected. Annual Income Statement Sales revenue $ 13,200 Variable cost 0 x Contribution 13,200 margin Fixed cost 1,600 Net income $ 11,600 Prev 2 of 5 a. Use the contribution margin approach to calculate the magnitude of b. Use the operating leverage measure computed in Requirement a toc earn if it experiences a 10 percent increase in revenue. The sales price c-1. Verify your answer to Requirement b by constructing an income state sales price is not affected. c-2. Calculate the percentage change in net income for the two incomes ws X Answer is not complet Reg C2 Complete this question by entering your answers in the tabs below. Req A and B Reg C1 Reg C2 Calculate the percentage change in net income for the two income statements. Change in net income %