Exercise 11-16A (Algo) Assessing the magnitude of operating leverage LO 11-4 The following income statement applies to Baird Company for the current year: Income Statement Sales revenue (440 units x $26) Variable cost (440 units x $11) Contribution margin Fixed cost Net income $11,440 (4,840) 6,600 (3,600) $ 3,000 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 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, 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. (Do not round intermediate calculations. Round "Operating leverage" to 2 decimal place.) a. Operating leverage b. Net income times