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need help with this question The following income statement applies to Benson Company for the current year: Required a. Use the contribution margin approach to
need help with this question
The following income statement applies to Benson Company for the current year: 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. c1. 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 Step by Step Solution
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