The following income statement applies to Zachary Company for the current year Income Statement Sales revenue (530 units x $43) $ 22,790 (14,840) Variable cost (530 units x $28) Contribution margin Fixed cost 7,950 (5,300) 2,650 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 Zachary Company will earn if it expelences 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. Afterwards, use the operating leverage measure previously computed for Requirement A to determine the amount of net income that Zachary Company wll 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 1 decimal place.) Show less A Operating leverage times a. b. Net income Reg C1 Rag A and B1 Next Prev 2 of 6 The following income statement applies to Zachary Company for the current year: Income Statement Sales revenue (530 units x $43) $ 22,790 (14,840) 7,950 (5,300) $ 2,650 Variable cost (530 units Contribution margin $28) Fixed cost 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 Zachary 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. -2. Calculate the percentage change in net income for the two income statements. Complete this question by entering your answers in the tabs below. ReqC1 Req A and B 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 The following income statement applies to Zachary Company for the current year: Income Statement Sales revenue (530 units $43) Variable cost (530 units x $28) Contribution margin $22,790 (14,840) 7,950 (5,300) Fixed cost 2,650 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 Zachary 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 2 Req A and B Req C1 Calculate the percentage change in net income for the two income statements. % Change in net income Req C1