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The contribution income statement for Island Adventures is below: Revenue $ 5 0 , 0 0 0 Variable Costs $ 3 0 , 0 0

The contribution income statement for Island Adventures is below:

Revenue $

50, 000

Variable Costs $

30, 000

Contribution Margin $

20, 000

Fixed Costs $

10, 000

Net Income $

10, 000

Calculate the operating leverage for Island Adventures. Based on the operating leverage, if sales increase by

10 %,

by how much will net income increase?

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