The following income statement applies to Rooney Company for the current year: Income Statement Sales revenue...

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The following income statement applies to Rooney Company for the current year: Income Statement Sales revenue (470 units $37) Variable cost (470 units $22) Contribution margin Fixed cost Net income Required $17,390 (10,340) 7,050 (4,700) $2,350 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 Rooney 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. The following income statement applies to Rooney Company for the current year: Income Statement Sales revenue (470 units $37) Variable cost (470 units $22) Contribution margin Fixed cost Net income Required $17,390 (10,340) 7,050 (4,700) $2,350 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 Rooney 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.