Exercise 11-16 Assessing the magnitude of operating leverage LO 11-4 The following income statement applies to Jordan Company for the current year Sook Income Statement Sales revenue (120 units * $33) Variable coat (420 units * $18) Contribution margin Fixed cost Net income 13,860 (7.560) 6,300 (1.300) $ 2,000 Print rences 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 Jordan Company will earn if it experiences a 20 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 20 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. RonR Renri Ron complete this question by entering your answers in the tabs below. Reg A and B Req ci Reg 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 Jordan Company will eam if it experiences a 20 percent increase in revenue. The sales price per unit is not affected. (Do not found intermediate calculations. Round "Operating leverage" to 1 decimal place.) Show less times Operating leverage Net income Req C1 > ch ho entering your answers in the tabs below. A and B Req di Req c2 verify your answer to Requirement b by constructing an income statement based on a 20 percent increase in sales revenue The sales price is not affected. Annual Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income Req A and B Req c2 > og arch M y 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 Jordan Company eam if it experiences a 20 percent increase in revenue. The sales price per unit is not affected. -1. Verify your nswer to Requirement b by constructing an income statement based on a 20 percent increase in sales revenue. sales price is not affected. c-2. Calculatr 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 Calculate the percentage change in net income for the two income statements. Change in net income search o