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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Percent of Amount Sales $ 138,000 100% 55,2001 40 82,800 608 18,000 $ 64,800 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 21% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 31 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 1.28

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