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8 The following income statement was drawn from the records of Fanning Company, a merchandising firm FANNING COMPANY Income Statement For the Year Ended December 31. Year 1 Sales revenue (7,eee units - $167) Cost of goods sold (7,000 units 586) Gross margin Sales commissions (ex of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,eee units $5) Net Income $1,169,00 (62.000) 567.000 (116,900 (81,000) (4,000) (45,000) (35,eee) $ 255, 100 eBook Him print . 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 Fanning wil earn if sales increase by 10 percent . References Complete this question by entering your answers in the tabs below. Reg A Reg Band Reconstruct the income statement using the contribution margin format FANNING COMPANY Income Statement For the Year Ended December 31, Year 1 Les Variable costs Les Ped costs