Q.6

a. Reconstruct the income statement using the contribution margin format. b. Catcutate the magnitude of operating teverage c. Use the measure of operating leverage to determine the amount of net income Franklin will earn if sales inctease by 20 percent. Complete this question by entering your answers in the tabs below. Reconstruct the income statement using the contribution margin format. 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 Franklin will earn if sales increase by 20 percer Complete this question by entering your answers in the tabs below. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Franklin will carn if sales increase by 20 percent. (Round your intermediate calculations and "Operating leverage" answer to 2 decimal places. Pound the "Net income value to nearest whole dolfar) Problem: Module 5 Textbook Problem 6 Learning Objectives: - 5.5 Prepare an income statement using the contribution margin approach - 5.6 Colculate the magnitude of operating leverage The following income statement was drawn from the records of Franklin, 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 Franklin will earn if sales increase by 20 percent. Complete this question by entering your answers in the tabs below. Reconstruct the income statement using the contribution margin format