Check my work The following income statement was drawn from the records of Baird Company, a merchandising firm: BAIRD COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (4,500 units * $168) Cost of goods sold (4,500 units X $85) Gross margin Sales commissions (54 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units X $4) Net income ok $ 756,000 (382,500) 373,500 (37,880) (84,000) (30, cea) (42, eae) (18,000) $ 161,700 int ences 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 Baird will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Reg A Reg B and c Reconstruct the income statement using the contribution margin format. BAIRD COMPANY Check Complete this question by entering your answers in the tabs below. Req A Reg B and C ts Reconstruct the income statement using the contribution margin format. eBook Hint BAIRD COMPANY Income Statement For the Year Ended December 31, Year 1 eferences Less: Variable costs Less: Fixed costs Regando > Check 5 Advertising expense Depreciation expense Shipping and handling expenses (4,500 units * $4) Net income (30,000) (42,000) (18,000) $ 161,700 33 Ints 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 Baird will earn if sales increase by 10 percent eBook Hint References Complete this question by entering your answers in the tabs below. Reg A Reg B and C Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Baird 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) b. Operating leverage Net income