Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent of Sales 100% dox 60% Amount $ 125,000 50.000 75,000 22,000 $ 53,000 Sales Variable expenses Contribution margin Fixed expenses Net operating 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 20% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverago Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income state Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 125,000 58,000 75,000 22,800 $ 53,000 Percent of Sales 100% 40% 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 20% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in sales. 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 20% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (.e 0,1234 should be entered as 12.34 Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 125,000 50,000 75,000 22,000 $ 53,000 Sales 100% 40% 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 20% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 20% Increase in sales. 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 20% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %
