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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $129,000 51,600 Percent of Sales 100%

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $129,000 51,600 Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income 77,400 23,000 $ 54,400 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 27% increase in unit sale Engberg Company Contribution Income Statement y work mode: indicate completion. Return JTV income 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 increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 27% inc unit sales Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 27% increase Engberg Company Contribution Income Statement Amount $183,438 73,375 % 110,063 55,663 Net operating income $ 54,400 Sales Variable expenses Contribution margin Fored expenses Percent of Sales % % 0 % pe here to search o HP EDALLA Sales 100% 40% Amount $129,000 51,600 77,400 23,000 $ 54,400 Sales Variable expenses Contribution margin Fixed expenses Net operating income 60% 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. Answer is not complete. 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 27% increase in ur your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1: entered as 12,34).) Net operating income Increases by 38.00 %

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