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 Fanning Company, a merchandising firm: -Book Print worences EANING COMPANY Income Statement For the Year Ended December 31. Year 1 Sales revenue (6,000 units 5163) Cost of goods sold (6.000 units 681) GEOSS margin Sales commissions (107 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,000 units - 53) Tetine $ 970.000 (486,000) 492.000 197.800) (es, 000) (33.000) (41.000) (18.000) $ 217, 200 Required .. 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 Fanning will earn if sales increase by 20 percent Complete this question by entering your answers in the tabs below