3 Exercise 11-15 Using contribution margin format income statement to measure the magnitude of operating leverage LO 11-3, 11-4 following income statement was drawn from the records of Stuart Company, a merchandising firm points Skipped STUART COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (4,500 units x $169) 760, 500 Cost of goods sold (4,500 units $84) (378, 009) eBook Gross margin 382,500 (76,050) (86,000) (33,000) (43,000) h sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units $2) Net income Hint Print (9,000) s 135,4560 Reterences Required a. Reconstruct the income statement using the contribution margin form b. Calculate the magnitude of operating leverage c. Use the measure of operating leverage to determine the amount of net income Stuart will earn if sales increase by 20 percent. 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