The following income statement was drawn from the records of Perez, a merchandising firme PER COMPANY Income Statement For the Year Ended December 31 Sales revenue (5.500 units 5161) cost of goods sold (5.500 units 587) Cromargin Sales comunions (109 of sales) Administrative salaries expense Advertising expense Depreciation expenste Shipping and handling expence (5,500 units) Net Income 885,500 (420.500) 407,000 (88,550 140,000) (67.000) 122.000) $ 120,450 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 Perer will earn if sales increase by 20 percent