The following income statement applies to Nagano Company for the current year:

Income Statement
Sales revenue (440 units $26)	$	11,440
Variable cost (440 units $11)		(4,840	)
Contribution margin		6,600
Fixed cost		(3,600	)
Net income	$	3,000

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 earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations.)

c-1. Verify your answer to Requirement b by constructing an income statement based on a 15 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.