3 375 paines Exercise 2-13A (Algo) Using contribution margin format income statement to measure the magnitude of operating leverage LO 2-3, 2-4 The following income statement was drawn from the records of Jordan Company, a merchandising firm JORDAN COMPANY Income Statement For the Year Ended December 31, Year 1 eBook Sales revenue (8,000 units $161) $1,288,000 Cost of goods sold (8,000 units $83) (664,000) Gross margin 624,000 Sales commissions (5% of sales) (64,400) Hint Administrative salaries expense Advertising expense Depreciation expense (86,000) (33,000) (47,000) Prim Shipping and handling expenses (8,000 units x $3) (24,000) Net income $ 369,600 References Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage c. Use the measure of operating leverage to determine the amount of net income Jordan will earn if sales increase by 10 percent Mc Graw Complete this question by entering your answers in the tabs below. Req A Req B and C Reconstruct the income statement using the contribution margin format. JORDAN COMPANY Income Statement For the Year Ended December 31, Year 1 Less: Variable costs