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 Vernon Company, a merchandising firm: COMP ANY 2018 Sales revenue (5,500 units $169) Cost of goods sold (5,500 units$85) (467,500) 462,000 (46,475) (85,000) (36,000) 47,000) (5,500) Gross margin sales commissions (5% of sales) Advertising expense Depreciation expense Shipping and handling expenses (5,500 units $1) s 242,025 Required a. Recbnstruct 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 Vernon will earnit sales increase by 20 percent Complete this question by entering your answers in the tabs below.