The following income statement applies to Franklin Company for the current year Income Statement Sales revenue (410 units x $31) variable cost (410 units x $16) Contribution margin Fixed cost Net income $12,718 (6,560)- 6,150 ,100 2,850 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 Franklin Company will 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. Reg A and b Regutement 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 rch