The following income statement was drawn from the records of Thornton Company, a merchandising firm: THORNTON COMPANY Income Statement For the Year Ended December 31, Year Sales revenue (6,500 units X $162) Cost of goods sold (6,500 units X $84) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $1,053,000 (546,880) 507, (52,650) (82,000) (31,000) (44,000) (6,500) Net Income 290,850 Required o. Reconstruct the income statement using the contribution thergin format b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Thornton will earn if sales increase by 10 percent Complete this question by entering your answers in the tabs below. Reg A Red B and C Reconstruct the income statement using the contribution marain format Pray 7 0 8 Next > ere to search Complete this question by entering your answers in the tabs below. Reg A Req B and C Reconstruct the income statement using the contribution margin format. THORNTON COMPANY Income Statement For the Year Ended December 31, Year 1 Less: Variable costs Less Fixed costs Reg Band >