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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 Amount Sales Sales $ 145,

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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 Amount Sales Sales $ 145, 000 100% Variable expenses 58, 000 40 Contribution margin 87, 000 60% Fixed expenses 19, 000 Net operating income $ 68, 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit 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 11% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales

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