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A B and C need to be answered need help constructing these show work please Help Save & Exi Chec The following income statement was

A B and C need to be answered need help constructing these show work please

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Help Save & Exi Chec The following income statement was drawn from the records of Gibson Company, a merchandising firm: GIBSON COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (4,560 units x $169) Cost of goods sold (4,500 units x $85) $ 760,500 Gross margin (382, 500) Sales commissions (10% of sales) 378,090 (76,050) Administrative salaries expense (89 , 009 Advertising expense (30,009 Depreciation expense (41, 060 Shipping and handling expenses (4,500 units x $2 (9,060) Net income $ 132,950 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 Gibson will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below.

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