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Check my Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows Sales Variable expenses Contribution margin

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Check my 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 Amount $ 142,000 56,800 85,200 18,000 $ 67,200 Percent of Sales 100 489 685 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 14% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 14% 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 2 >

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