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9 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed

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9 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating Income nts Percent of Sales 100x 4X 60% Amount $ 133,000 53,200 79,800 17,000 $ 62,500 eBook Hint References Required: 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 20% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Found your answer to 2 decimal places.) Degree of operating loverage 140.49 Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% sex 60% Amount $ 133,000 53,200 79,800 17,000 $ 62,800 Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: 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 20% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 20% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (Le 1234 should be entered as 12.34).) Net operating income work Saved Required: 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 20% increase in unit sale 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 es Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales 96 % 0 % 0 S 0

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