The following income statement applies to Jordan Company for the current year: Income Statement Sales revenue (420 units X $33) Variable cost (420 units x $18) Contribution margin Fixed cost Net income $13,860 (7,560) 6,300 (4,300) $ 2,000 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 Jordan 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 Reg 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 Jordan 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 . 3.15 Operating leverage b. Net income - Reg A and B ReqC1 > Req A and B Req C1 Req c2 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. Annual Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income $ Req A and B Req C1 Req C2 Calculate the percentage change in net income for the two income statements. LLLLLLLLLLLLLLLLLLLLL IIIIIIIIIIII Change in net income