The following income statement was drawn from the records of Munoz, a merchandising firm MUNOZ COMPANY Income Statement For the Year Ended December 31 Sales revenue (6,eee units $164) Cost of goods sold (6,eee units X $84) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses 6,000 units $8) Net income * $984, eee (504,000) 489,99 K 49,200 (82, eee K35, eee) (42) 000 (18) de $ 253) 800 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 determine the amount of net income Munoz will earn if sales increase by 10 percent. Reg A Reg 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 0 Less: Fixed costs $ Req Band C > 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 10 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 C ReqA