education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252FmghmiGraded Homework iSavedCheck my work mode : This shows what is correct or incorrect for the work you have completed so far. It dox Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Req A and BReq C1Req C2a. Use the contribution margin approach to calculate the magnitude of operating leverage.b. Afterwards, use the operating leverage measure previously computed for Requirement A to determine the amount ofincome that Walton Company will earn if it experiences a 20 percent increase in revenue. The sales price per unit is notaffected.Note: Do not round intermediate calculations. Round "Operating leverage" to 2 decimal places.Show les:a. Operating leverage3.00b. Net income$6,968 XMcGrawHillDesktoppe here to search Url=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252omework iSavedck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicax Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Req A and BReq C1Req C2Verify 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.Annual Income StatementSales revenue$26,208Variable cost14,040 XContribution margin2,168Fixed cost5,200Net income$6,968Req A and BReq C2 >Desktop74OF Mostly sunnysearch SavedCheck my work mode : This shows what is correct or incorrect for the work you have completed so far. It doesc-1. Verify your answer to Requirement b by constructing an income statement based on a 20 percent increase insales price is not affected.c-2. Calculate the percentage change in net income for the two income statements.x Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Req A and BReq CiReq C2Calculate the percentage change in net income for the two income statements.Change in net income168 X %Desktop74OF Mostly sure to search heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252FImheprGraded Homework iSavedHelpExercise 11-16A (Algo) Assessing the magnitude of operating leverage LO 11-4The following income statement applies to Walton Company for the current year:Income StatementSales revenue (520 units x $42)$21, 840OokVariable cost (520 units x $27)(14, 040)Contribution margin7, 800dintFixed cost(5,200)Net income$2, 600PrintRequiredferencesa. 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 Walton Company willearn 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. Thesales 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 BReq C1Req C2McGrawPrev4 of 7Next >HillType here to searchDesktop74 F Mostly sunny