The following income statement was drawn from the records of Munoz Company, a merchandising firm: MUNOX COMPANY Income Statement For the Year Ended December 31, Year Sales revenue (5,500 units * $163) $ 896,500 Cost of goods sold (5,500 units $85) (467,500) Gross margin 429,000 Sales commissions (10% of sales) (89,650) Administrative salaries expense (87,000) Advertising expense (34,000) Depreciation expense (47,000) Shipping and handling expenses (5,500 units X $3) (16.500) Net income $ 154,850 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 Munoz will earn if sales increase by 20 percent Complete this question by entering your answers in the tabs below. Reg A Req B and C Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Munoz will earn if sales increase by 20 percent. (Round your intermediate calculations and Operating leverage answer to 2 decimal places. Round the "Net Income" value to nearest whole dollar.) 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 Munoz will earn if sales increase by 20 percent Complete this question by entering your answers in the tabs below. Rega Reg B and C Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Munoz will earn if sales increase by 20 percent. (Round your intermediate calculations and Operating leverage" answer to 2 decimal places. Round the "Net Income" value to nearest whole dollar.) b. Operating leverage Net Income