The followIng Income statement was drawn from the records of Munoz Company, a merchandising firm:...
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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, 2818 16.66 points Sales revenue (6,500 units $167) Cost of goods sold (6,588 units x $83) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,589 units x $4) Net income $1,085,580 539,588) 546,888 (54,275) (83,808) (32,8e8) (42,808) (26,908) eBook Hint $308,725 Print Requlred a. Reconstruct the Income statement using the contribution margin format. References 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. Complete this question by entering your answers in the tabs below Req A Req B and C Reconstruct the income statement using the contribution margin format. MUNOZ COMPAN Income Statement For the Year Ended December 31, 2018 Less: Variable costs Less: Fixed costs ReqA Req B and C
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