FINCH COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,580 units x $169) Cost of goods sold (6,580 units * $85) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units X $4) Net income $1,098,588 (552,500) 546,990 (109,850) (90,00) (30,000) (42,000) (26,000) $ 248,150 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 20 percent Complete this question by entering your answers in the tabs below. ces Reg A Reg Band Reconstruct the income statement using the contribution margin format. FINCH COMPANY Income Statement For the Year Ended December 31. Year 1 Less: Variable costs Newt