Exercise $11-15$A $($Static$)$ Using contribution margin format income statement to measure the magnitude

of operating leverage LO $11-3,11-4$

The following income statement was drawn from the records of Joel Company, a merchandising firm:

Required

a$.$ Reconstruct the income statement using the contribution margin format.

b$.$ Calculate the magnitude of operating leverage. Round the answer to two decimal places.

c$.$ Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by $10$ percent.

Complete this question by entering your answers in the tabs below.

Req A

Reconstruct the income statement using the contribution margin format.

JOEL COMPANY

Income Statement

For the Year Ended December $31,$ Year $1$