The following income statement was drawn from the records of Finch Company, a merchandising firm: FINCH COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (4,500 units x $170) $765, 000 Cost of goods sold (4,500 units x $90) (405, 000) Gross margin 360, 000 Sales commissions (10% of sales) (76, 500) Administrative salaries expense (80, 000) Advertising expense (38, 000) Depreciation expense (42, 000) ices Shipping and handling expenses (4,500 units x $3) (13, 500) Net income $110, 000 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 Finch will earn if sales increase by 10 percent. Complete this question by ente