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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $148,000 59.200 Percent of Sales 100%
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $148,000 59.200 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses 88,800 24,000 60% Net operating income 64,800 Required 1. Compute the company's 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 15% increase in 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)) et operating income 3, Construct a new contribution format income statement for the company assuming a 15% increase in sales Engberg Company Contribution Income Statement Total
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