The following income statement was drawn from the records of Zachary Company, a merchandising firm Che ZACHARY COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (4,500 units X 5169) Cost of goods sold (4,500 units X $86) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,58 units x 59) Net Income $ 766),500 (387,000 173,50 (33,025) (02.000) (37.000) (45,000 (13500 $157,975 ces 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 determme the amount of net income Zachary will earn it sales increase by 10 percent Complete this question by entering your answers in the tabs below. Rega Rog B and