The following income statement was drawn from the records of Walton Company, a merchandising firm: WALTON COMPANY Incone Statement For the Year Ended December 31, Year 11 Sales revenue (5,000 units $165) $825,000 Cost of goods sold (5,000 units $89) (445,000) Gross margin Sales commissions (10% of sales) 380,000 (82,500) (88,000) (32,000) (50,000) (20,000) $107,500 Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,000 units $4)) Net income 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 Walton will eam if sales increase by 10 percent. 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.