The following income statement was drawn from the records of Munoz a merchandising firm: Chec MUNOZ COMPANY Income Statement For the Year Ended December 31 Sales revenue (7,500 units $161) Cost of goods sold (7,580 units * $88) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,500 units * $1) Net income $1,207,500 (660,000) 547,500 (60,375) (88,000) (39,000) (46,000) (7,500) $ 306,625 Required o. 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 Munoz will earn if sales increase by 10 percent Complete this question by entering your answers in the tabs below. Red A Reg band Activate Windows Go to San Req A Req B and C Reconstruct the income statement using the contribution margin format. MUNOZ COMPANY Income Statement For the Year Ended December 31 Less: Variable costs Less Fixed costs S 0 Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the magnitude of operating leverage. Use the measure of operating leverag Munoz will earn if sales increase by 10 percent. (Round your intermediate calculation decimal places. Round the "Net income" value to nearest whole dollar.) b. Operating leverage Net income C