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5 The following income statement was drawn from the records of Finch Company, a merchandising firm: FINCH COMPANY Income Statement For the Year Ended December 31, 2018 891,000 Sale& revenue (5,500 units $162) Cost of goods sold (5,500 units x $87) Cross margin Sales commissions (5% of sales Administrative salaries expense Advertising expense Depreciation expense Shipping and $4) Net income 478,500 412,500 44,550) (89,000) (33,000) 41,000) (22,000) 27.77 points eBook es (5,500 unita * handling expens Hint 182,950 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 Finch will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below Req A Req B and C Reconstruct the income statement using the contribution margin format. Complete this question by entering your answers in the tabs below 5 Reg A Req B and c Reconstruct the income statement using the contribution margin format. 27.77 points FINCH COMPANY Income Statement For the Year Ended December 31, 2018 eBook Hint References Less: Variable costs Less: Fixed costs 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 Finch will earn if sales increase by 10 percent. 27.77 points Complete this question by entering your answers in the tabs below eBook Hint References Req AReq B and C Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net inco Finch will earn if sales increase by 10 percent. (Round "Operating leverage" to 2 decimal places and round "Net income" answer to nearest whole dollar b. Operating leverage C. Net income times K Req A Req B andc