Thcome statement For the Year Ended December 31 Sales revenue (2,000 units 5125) Cost of goods sold (2,000 units X $65) Gross margin Sales commissions (109 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (2,800 units * $1.00) Net Income $ 250,000 (130,00) 120,880 (25,000) (30,000) (20,000) (24,000 (2,80 19,900 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 Joel will earn if sales increase by 10 percent Complete this question by entering your answers in the tabs below. Req A Red Band Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent. (Round your intermediate calculations and the final answer for "Operating leverage" to 2 decimal place.) 6. Operating leverage Net income