Question
Engberg Company installs lawn sod in home yards. The companys most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 121,000
Engberg Company installs lawn sod in home yards. The companys most recent monthly contribution format income statement follows:
Amount Percent of Sales Sales $ 121,000 100% Variable expenses 48,400 40% Contribution margin 72,600 60% Fixed expenses 19,000 Net operating income $ 53,600
Using the degree of operating leverage, estimate the impact on net operating income of a 22% 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).) Net Operating income (increases or decreases) by _____ % ? |
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