The following income statement applies to Rundle Company for the current year: Income Statement Sales revenue (440 units x $36) Variable cost (440 units x $21) Contribution margin Fixed cost Net income $15, 840 (9,240) 6,600 (4,600) $ 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 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 b 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 for the two income statements. Complete this question by entering your answers in the tabs below. Req A and B Req C1 Req 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 if it 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.) a. times Operating leverage Net income b. 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. 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. Change in net income %