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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1008 400 talen Variable

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1008 400 talen Variable expetes Contribution margin Fixed expenses Bet operating income Amount $ 150,000 60,000 90,000 17,000 $ 75,000 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 25% increase in unit sales. 3. Construct a new contribution format Income statement for the company assuming a 25% increase in unit sales, Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places) 1.23 Degree of corting leverage Required 2 >

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