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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 Ceetribution margin Net
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Ceetribution margin Net operating income Amount $ 130,000 Percent of Sales $2,000 100% 40 76,000 60% 21,000 $.57,000 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 15% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 15% Increase in unit 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? Note: Round your answer to 2 decimal places. Degree of operating leverage Required 2>
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