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The following income statement was drawn from the records of Buffer Company, a merchandising firm. a. Reconstruct the income statement using the contribution margin format.

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The following income statement was drawn from the records of Buffer Company, a merchandising firm. a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. (s.) Use the measure of operating leverage to determine the amount of net income Buffer will earn if sales increase by 10 percent. (Round your intermediate calculations to one decimal place and final answer to the nearest whole dollar amount.)

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