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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,

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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, 2018 Sales revenue (7,500 units * $167) $1,252,500 Cost of goods sold (7,500 units * $82) (615,000) Gross margin 637,500 Sales commissions (58 of sales) (62,625) Administrative salaries expense (85,000) Advertising expense (30,000) Depreciation expense (46,000) Shipping and handling expenses (7,500 units x (22,500) Net income $ 391,375 $3) 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 10 percent. Complete this question by entering your answers in the tabs below. Req A Reg B and C Reconstruct the income statement using the contribution margin format. BENSON COMPANY Income Statement For the Year Ended December 31, 2018 Less: Variable costs Less: Fixed costs REGA ReqB and C > 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, 2018 Sales revenue (7,500 units x $167) $1,252,500 Cost of goods sold (7,500 units x $82) (615,000) Gross margin 637,500 Sales commissions (58 of sales) (62,625) Administrative salaries expense (85,000) Advertising expense (30,000) Depreciation expense (46,000) Shipping and handling expenses (7,500 units * $3) (22,500) Net income $ 391,375 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 10 percent. Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Benson will earn if sales increase by 10 percent. (Round "Operating leverage" to 2 decimal places and round "Net income" answer to nearest whole dollar.). b. Operating leverage Net income times c.

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