Required o. 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 Franklin Company 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. Complete this question by entering your answers in the tabs below. Req Aand B Requirement Requirement C1 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 Franklin Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations. Round "Operating leverage" to 2 decimal place.) Show less a Operating leverage b. Not income Requirement C1 k 1 Saved 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 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 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 Requ t Requirement C2 Verify your answer to Requirement b by construct The sales price is not affected ing an income statement based on a 10 percent increase in sales revenue Annual I e Statement Sales revenuo Variable cost Contribution margin Fixed cost Net income Req A and B Requirement C2> Net income 2,050 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 incon 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 increa 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 Requirement Requiremen C1 C2 Calculate the percentage change in net income for the two income statements. Net income 2,050 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 incon 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 increa 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 Requirement Requiremen C1 C2 Calculate the percentage change in net income for the two income statements.
