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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Required: What is the company's degree of
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows:
Required:
What is the company's degree of operating leverage?
Using the degree of operating leverage, estimate the impact on net operating income of a increase in unit sales.
Construct a new contribution format income statement for the company assuming a increase in unit sales.
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What is the company's degree of operating levergeRound your answer to decimal place.
Degree of operating leverage
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