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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 127,000 50,800 75,200 20.000 $

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 127,000 50,800 75,200 20.000 $ 56,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income Percent of Sales 100% 40% 60% 29 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 16% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 16% 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? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 > Mauro Products distributes a single product, a woven basket whose selling price is $11 per unit and whose variable expense is $8 per unit. The company's monthly fixed expense is $5,400. Required: 1. Calculate the company's break-even point in unit sales, 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) $ 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales Break-even point in dollar sales 1,200 baskets 15,600 1,350 baskets $ 0

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