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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 Amount $146, eee 58,400
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales Amount $146, eee 58,400 100% Sales 40% Variable expenses 60% Contribution margin 87,600 Fixed expenses 24,000 Net operating income $ 63,600 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 27% increase in sales 3. Construct a new contribution format income statement for the company assuming a 27 % increase in sales. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 etired 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 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).) by Net operating income Required 1 Required 3 Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 Construct a new contribution format income statement for the company assuming a 27% increase in sales. Engberg Company Contribution Income Statement Percent of Sales Amount % Required 3
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