Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales Amount $ 136,000 54,400 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income 60% 81,600 24,000 $ 57,600 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent Amount of Sales $ 100% 136,000 54,400 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income 60% 81,600 24,000 $ 57,600 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Using the degree of operating leverage, estimate the impact on net operating income of a 11% 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).) Show less Net operating by % income Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent Amount of Sales $ 100% 136,000 54,400 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income 60% 81,600 24,000 $ 57,600 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Complete this question by entering your answers in the tabs below. Required Required Required 2 3 1 Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Engberg Company Contribution Income Statement Percent of Amount Sales % % %
