Accounting

The following income statement was drawn from the records of Thornton, 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 Thornton will earn if sales increase by 10 percer Complete this question by entering your answers in the tabs below. Reconstruct the income statement using the contribution margin format. 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 Thornton, 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 Thornton will earn if sales increase by 10 percent. 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 Thornton will earn if sales increase by 10 percent. (Round your intermediate calculations and "Operating leverage" answer to 2 decimal places. Round the "Net income" value to nearest whole dollar.)