The following income statement applies to Rundle Company for the current year: Income Statement Sales revenue (446 units X $35) $15,846 Variable cost (449 units x $21} 59,246! Contribution margin 5,666 Fixed cost [4.5392 Net income $ 25965 | 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 Rundle 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 1) 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 forthe two income statements. Complete this question by entering your answers in the tabs below. Reg .0. and B Reg (31 Reg C2 Use the contribution margin approach to calculate the magnitude of operating leverage. use the operating leverage measure computed in Requirement a to determine the amount of net income that Rundle Company will earn ifit 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.) Shovulessn Req A and B Req C1 Req C2 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. Sales revenue 1Variable cost Contribution margin Fixed cost Net income Req A and B Reg C1 Req C2 Calculate the percentage change in net income for the two income statements. Change in net income %