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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: eccent of Sale 1000 400 CON Sale
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: eccent of Sale 1000 400 CON Sale Variable expenses Contributingin Few Het operating income $125.000 50.000 75,000 22.000 53,000 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 26% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 26% increase in unit sales
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