ezto.mheducation.com |? Home myEFSC McGraw Hill Connect Chapter 11 Homework Check Your Work Chegg Study | Guided S a. Use the contribution margin approach to calculate the magnitude of operating leverage. (Round your answer to 2 decimal places.) ating levera b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Nagano Company will earn if it experiences a 15 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations.) ncome c- Verify your answer to Requirement b by constructing an income statement based on a 15 percent 1. increase in sales revenue. The sales price is not affected Annual Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income 0 Calculate the percentage change in net income for the two income statements. 2. Change in net income