The following income statement was drawn from the records of munoz company, a merchandising firm: munoz company income statement for the year ended december 31, 2018 sales revenue (5,000 units × $169) $ 845,000 cost of goods sold (5,000 units × $88) (440,000 ) gross margin 405,000 sales commissions (10% of sales) (84,500 ) administrative salaries expense (88,000 ) advertising expense (30,000 ) depreciation expense (41,000 ) shipping and handling expenses (5,000 units × $4) (20,000 ) net income $ 141,500 required reconstruct the income statement using the contribution margin format. 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.