Help Save The following income statement applies to Benson Company for the current year. Income Statement Sales revenue (370 units $27) Variable cost (370 units $12) Contribution margin Fixed cost Net Income $ 9,990 (4.440) 5,550 (2.700) $ 1,850 27 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 Benson 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. Reg A and B Red C1 Reg 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 Benson Company will earn if it experiences a 20 percent increase in revenue. The sales price per unit is not affected. (Do not round Intermediate calculations. Round "Operating leverage to 2 decimal place.) times Operating leverago Net income b Reg C1 > The following income statement applies to Benson Company for the current year Incontament Sales revenue (370 units $27) 9,990 Variable cost (30 units 512) (440) Contribution margin 5,550 Fixed cost (3.700 Not income $ 1,850 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 thot Benson Company will eam 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. Re A and Regi Rm2 Verify your answer to Requirement by constructing an income statement based on a 20 percent increase in sales revenue. The sales price is not affected Annual income Statement Salos revenue Variable cost Contribution margin Fixed cost Not income The following income statement applies to Benson Company for the current year: Income Statement Sales revenue (370 units X $27) Variable cont (370 units * $12) Contribution margin Fixed cost Net income $ 9,990 (4,440) 5,550 (3,700) $ 1,850 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 Benson 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. Reg A and B Reg 1 Reg C2 Calculate the percentage change in net income for the two Income statements. Change in not incomo % Roq C1 RICA