Homework answers / question archive / The following income statement applies to Nagano Company for the current year: 12 Income Statement Sales revenue (520 units X $44) Variable cost (520 units x $29) Contribution margin Fixed cost $ 22,880 (15,080) 7,800 (5, 400) $ 2,400 02:43:25 Net income Required a

The following income statement applies to Nagano Company for the current year: 12 Income Statement Sales revenue (520 units X $44) Variable cost (520 units x $29) Contribution margin Fixed cost $ 22,880 (15,080) 7,800 (5, 400) $ 2,400 02:43:25 Net income Required a

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The following income statement applies to Nagano Company for the current year: 12 Income Statement Sales revenue (520 units X $44) Variable cost (520 units x $29) Contribution margin Fixed cost $ 22,880 (15,080) 7,800 (5, 400) $ 2,400 02:43:25 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 Nagano Company will earn 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. 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 Reg C1 Reg 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 Nagano Company will earn if it experiences a 20 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations. Round "Operating leverage" to 2 decimal place.) Show less a. Operating leverage Net income b. Req A and B Req C1 > The following income statement applies to Nagano Company for the current year: 12 Income Statement Sales revenue (520 units X $44) Variable cost (520 units X $29) Contribution margin Fixed cost Net income $ 22,880 (15, 080) 7,800 (5,400) $ 2,400 S02:43:17 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 Nagano Company will earn 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. 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 Verify 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 Statement Sales revenue Variable cost Contribution margin Fixed cost Net income < Req A and B Req C2 > The following income statement applies to Nagano Company for the current year: 12 Income Statement Sales revenue (520 units X $44) Variable cost (520 units X $29) Contribution margin Fixed cost $ 22,880 (15,080) 7,800 (5,400) $ 2,400 02:43:10 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 Nagano Company will earn 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. 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 Calculate the percentage change in net income for the two income statements. Change in net income % < Req C1 Req C2