The following income statement was drawn from the records of McAndrew Incorporated, a manufacturing business. Sales Cost of Goods Sold Gross Margin Sales Commissions Administrative salaries expense Advertising Expense Depreciation Expense Shipping and Handling 7,000,000 (3.400,000) 3,600,000 (500,000) (750,000) (400,000) (800,000) (650,000) 500,000 Net Income REQUIRED 1. Reconstruct the income statement using the contribution margin format. Assume COGS is variable and Advertising fixed. 2. Calculate the magnitude of operating leverage 3. Use the measure of operating leverage to determine the amount of net income McAndrew will earn if sales increase by17 ent Don't forget to categorize all of the other expenses into fixed and variable (sales commissions, admin salaries, depreciation and shipping&handling