Answer fully with formulas if used. Thanks

Exercise 2-13B LO Using a contribution margin format income statement to measure the magnitude of operating leverage Nagano Company, a merchandising firm, reported the following operating results: Income Statements Sales revenue (2,400 units $100) Cost of goods sold (2,400 units $65) Gross margin Sales commissions (10% of sales revenue) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expense (2,400 units $1) Net income 240,000 (156,000 84,000 (24,000) 15,000 (20,000) (10,600) (2,400) $ 12,000 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. e. Use the measure of operating leverage to determine the amount of net income that Nagano will earn if sales revenue increases by 10 percent