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5 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statemer 2 points Percent of Sales 100% 40%
5 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statemer 2 points Percent of Sales 100% 40% 60% Amount $ 130,000 52,000 78,000 22,000 $ 56,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income eBook Required: Hint 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 21% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in unit sales. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
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