Problem: Module 5 Textbook Problem 6 Learning Objectives: - 5-5 Prepare an income statement using the contribution margin approach - 5-6 Calculate the magnitude of operating leverage The following income statement was drawn from the records of Perez, a merchandising firm: Required a. 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 Perez will earn if sales increase by 20 percent. \begin{tabular}{|l|l|l|} \hline & & \\ \hline b. & Operating leverage & \\ \hline c. & Net income & \\ \hline \end{tabular} Reconstruct the income statement using the contribution margin format