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Reconstruct the income statement using the contribution margin format. - Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Franklin will earn if sales increase by 20 percent. Reconstruct the income statement usina the contribut b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Franklin will earn if sales increase by 20 percent. Note: Round your intermediate calculations and "Operating leverage" answer to 2 decimal places. Round the "Net income" value to nearest whole dollar