The following income statement applies to Benson Company for the current year: Income Statement Skipped Sales revenue (370 units * $27) $ 9,990 Variable cost (370 units * $12) (4,440) Contribution margin 5,550 Fixed cost (3, 700) Net 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 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. Req A and B Req C1 Req 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 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.) Show less A Operating leverage h. Net incomeVerify 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. Annual Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income SCalculate the percentage change in net income for the two income statements. Change in net income %2 Munoz Camps, Inc. leases the land on which it builds camp sites. Munoz is considering opening a new site on land that requires $3,000 of rental payment per month. The variable cost of providing service is expected to be $7 per camper. The following chart shows the number of campers Munoz expects for the first year of operation of the new site: Skipped Jan. Feb. Mar. Apr . May June July Aug. Sept. Oct. Nov. Dec. Total 120 250 200 200 300 500 650 650 350 380 100 300 4,000 Required Assuming that Munoz wants to earn $8 per camper, determine the price it should charge for a camp site in February and August. (Do not round intermediate calculations.) Price February August3 Finch Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 201 boats at a total cost of $158,600. The low point in production occurred in January when it produced 37 boats at a total cost of $52,000. Required a. Use the high-low method to estimate the amount of fixed cost incurred each month by Finch Boat Company. b. Determine the total estimated cost if 150 boats are made. a Fixed cost D. Total estimated cost4 Janice Huffman has decided to start Vernon Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $730 per month. Labor costs are expected to be $70 per house cleaned and supplies are expected to cost $8 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d. Determine the total expected cost of cleaning houses, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. e. Determine the average expected cost per house, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? (Round "Average per unit" answers to 2 decimal places.) No. of Houses Cleaned 20 30 40 Total expected rental cost Average per unit rental cost The cost of equipment is aDetermine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? No. of Houses Cleaned 20 30 40 Average per unit labor cost Total labor cost The cost of labor is aDetermine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? No. of Houses Cleaned 20 30 40 Average per unit supplies cost Total cost of supplies The cost of supplies is aDetermine the total expected cost of cleaning houses, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. No. of Houses Cleaned 20 30 40 Total expected costDetermine the average expected cost per house, assuming that Vernon Cleaning cleans 20, 30, or 40 houses during one month. (Round your answers to 2 decimal places.) No. of Houses Cleaned 20 30 40 Average cost per unit5 Rundle Cinemas is considering a contract to rent a movie for $1,700 per day. The contract requires a minimum one-week rental period. Estimated attendance is as follows: Monday Tuesday Wednesday Thursday Friday Saturday Sunday 460 280 200 530 1, 020 1, 020 460 Required a. Determine the average cost per person of the movie rental contract separately for each day. b. Suppose that Rundle chooses to price movie tickets at cost as computed in Requirement a plus $2.60. What price would it charge per ticket on each day of the week? c. Use weekly averaging to determine a reasonable price to charge for movie tickets. Complete this question by entering your answers in the tabs below. Req A Reg B and C Determine the average cost per person of the movie rental contract separately for each day. (Round your answers to 2 decimal places.) Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Average cost per personSuppose that Rundle chooses to price movie tickets at cost as computed in Requirement a plus $2.60. What price would it charge per ticket on each day of the week? Use weekly averaging to determine a reasonable price to charge for movie tickets. (Round your intermediate calculations and final answer to 2 decimal places.) Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Price per ticket Reasonable price