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Chapter #5-Homework 7 Saved Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 074 points

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Chapter #5-Homework 7 Saved Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 074 points Skipped ellook Hi References Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Percent of Amount Sales $ 86,000 100% 34,400 40 51,600 60% 40,420 $ 11,100 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% 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? (Round your answer to 2 decimal places.) Degree of operating leverage Required 1 Required 2> H- Chapter #5 - Homework 7 Saved Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of 0.74 points Amount Sales Sales $ 86,000 100% Skipped Variable expenses Contribution margin 34,400 401 51,600 601 Fixed expenses 40,420 Net operating income $ 11,180 eBook Het 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% 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 6% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (ie 1234 should be entered as 12.34).) Net operating income Help St Chapter #5 - Homework Saved 7 0.741 points Skipped eBook Hint References Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount $ 86,000 34,400 Percent of Sales 100% 40 51,600 601 40,420 $ 11,180 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. Mc Graw Hill Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0% $ 0 < Prev 7 of 7 Next>

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