The following income statement was drawn from the records of Jordan Company, a merchandising firm: JORDAN COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,000 units x $161) Cost of goods sold (6,000 units x $86) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,000 units x $4) Net income $ 966,000 (516,000) 450,000 (96,600) (82,000) (33,000) (40,000) (24,000) $ 174,400 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 Jordan will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Req A Req Band C Req A Req B and C Reconstruct the income statement using the contribution margin format. JORDAN COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue $ 966,000 Less: Variable costs Cost of goods sold 450,000 X Sales commissions 48,300 X Shipping and handling expenses 24,000 443,700 Contribution margin Less: Fixed costs Administrative salaries Advertising expense Depreciation expense 82,000 33,000 40,000 Net income $ 288,700 Calculate the magnitude of operating leverage. Use the measure Jordan will earn if sales increase by 10 percent. (Round your inte decimal places. Round the "Net income" value to nearest whole d . Operating leverage Net income 1.54 X 44,460 X .. $