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The following income statement applies to Nagano Company for the current year: Income Statement Sales revenue (530 units x $43) 22,790 Variable cost (530 units

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The following income statement applies to Nagano Company for the current year: Income Statement Sales revenue (530 units x $43) 22,790 Variable cost (530 units x $28) (14,840) Contribution margin (5.300) a. Use the contribution margin approach to calculate the magnitude of operating leverage. (Round your answer to 2 decimal places.) b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Nagano Company will eam fit experiences a 10 percent increase in revenue. The sales price per unit is not affected (Do not round intermediate calculations.) c- verify your answer to Requirement b by constructing an income statement based on a 10 percent 1. increase in sales revenue. The sales prioe affected. onage in net income 4500

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