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the following income statement relates to Riley company for the year: sales revenue $ 5 5 3 , 0 0 0 variable cost ( $

the following income statement relates to Riley company for the year: sales revenue $553,000 variable cost ($329000) Contribution earning 224000, fixed cost 184000
net income $40000
Calculate the magnitude of operating leverage abd use the measure of operating leverage to determine the amount of net income Riley will earn if sales increase by 6 percent

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