Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 00 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2.22 points Percent of Sales 100% 40% 60% Amount $ 143,000 57,200 B5,800 17,000 $ 68,800 - eBook Required: Print 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. References 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 leverage Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 8 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2.22 points Percent of Sales 1009 408 60% Amount $ 143,000 57,200 85,800 17,000 $ 68,800 cBook Required: Print 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. o References 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 27% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34).) Net operating income Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 00 Percent of Sales 100% 40% 602 Amount $ 143,000 57,200 85,800 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2.22 points 17,000 $ 68,800 - eBook Required: Print 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. References 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 27% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %
