Exercise $11-15$A $($Algo$)$ Using contribution margin format income statement to measure the magnitude of operating leverage LO $11-3,11-4$

The following income statement was drawn from the records of Campbell Company, a merchandising firm:

CAMPBELL COMPANY

Income Statement

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 Campbell will earn if sales increase by $10$ percent.