The following income statement was drawn from the records of Campbell, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31 Sales revenue (7,500 units * $164) Cost of goods sold (7,500 units X $87) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,500 units X $4) Net income $1,230,000 (652,500) 577,500 (61,500) (81,000) (30,000) (45,000) (30,000) $ 330,000 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 $f net income Campbell will earn if sales increase by 20 percent. CAMPBELL COMPANY Income Statement For the Year Ended December 31 Less: Variable costs Less: Fixed costs Req A 2 decimal places. Round the "Net income b. Operating leverage C. Net income