Eneliko Company installs home theater systems. The companys most recent monthly contribution format income statement appears below:

	Amount	Percent of Sales
Sales	$	148,000	100%
Variable expenses		59,200	40%
Contribution margin		88,800	60%
Fixed expenses		17,000
Net operating income	$	71,800

Required:
1.	Compute the companys degree of operating leverage.(Round your answer to 2 decimal places.)

Degree of operating leverage

2.	Using the degree of operating leverage, estimate the impact on net operating income of a 28% increase in sales.(Input the amount as a positive value. Round your intermediate calculations and final answers to 2 decimal places.)

Net operating income(Click to select)increasesdecreasesby

%

3.	Construct a new contribution format income statement for the company assuming a 28% increase in sales.(Input all amounts as positive values except losses which should be indicated by a minus sign.)

Contribution Income Statement
	Total
(Click to select)Fixed expensesNet operating income (loss)Contribution marginSalesVariable expenses	$
(Click to select)SalesVariable expensesContribution marginFixed expensesNet operating income (loss)
(Click to select)Net operating income (loss)Fixed expensesVariable expensesContribution marginSales
(Click to select)Variable expensesFixed expensesNet operating income (loss)Contribution marginSales
(Click to select)Variable expensesSalesContribution marginFixed expensesNet operating income (loss)	$