The following income statement applies to Rooney Company for the current year: Income Statement Sales revenue (550 units X $45) Variable cost (550 units X $30) Contribution margin Fixed cost $ 24,750 (16,500) 8,250 (5,500) $ 2,750 Net income 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 Rooney 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