The following income statement was drawn from the records of Butler Company, a merchandising firm: BUTLER COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue (6,000 units $165) $ 990,000 Cost of goods sold (6,000 units $83) (498,000 ) Gross margin 492,000 Sales commissions (10% of sales) (99,000 ) Administrative salaries expense (82,000 ) Advertising expense (33,000 ) Depreciation expense (48,000 ) Shipping and handling expenses (6,000 units $2) (12,000 ) Net income $ 218,000 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. (Round your answer to 2 decimal places.) c. Use the measure of operating leverage to determine the amount of net income Butler will earn if sales increase by 10 percent. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)