rices The following income statement was drawn from the records of Benson Company, a merchandising firm: BENSON COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,eee units $165) Cost of goods sold (6,000 units x $85) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,000 units $3) Net income $990,000 (510,000) 480,000 (49,500) (81,000) (31,000) (44,000) (18,000) $ 256,500 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 Benson will earn if sales increase by 20 percent.