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Can anyone help me fix this?- Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent
Can anyone help me fix this?-
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% 60% Amount $ 121,000 48,400 72,600 22,000 $ 50,600 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 28% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 28% 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 28% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34).) Net operating income increases by 40.17 % Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 28% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales 100% Sales $ 154,480 x 61,952 40% Variable expenses Contribution margin OOOOO 92,528 60 % Fixed expenses 22,000 $ 70,528 Net operating incomeStep by Step Solution
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