The following income statement was drawn from the records of Franklin, a merchandising firm:

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 Franklin will earn if sales increase by $10$ percent.

Complete this question by entering your answers in the tabs below.

Req $B$ and $C$

Reconstruct the income statement using the contribution margin format.

$\backslash$table$[[$FRANKLIN COMPANY,$],[$Income Statement,$],[,],[$Less Variable costs,$],[,],[,]]$