Exercise 2-13A 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 Butler Company, a merchandising firm: BUTLER COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue (6,000 units x $163) 978,000 (522,000) Cost of goods sold (6,000 units x $87) 456,000 Gross margin Sales commissions (5% of sales) 48,900 (82,000) Administrative salaries expense (31,000) Advertising expense (50,000) Depreciation expense Shipping and handling expenses (6,000 units x $2) 2,000 Net income 232,100