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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 $ 125.000 Sales Variable

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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 $ 125.000 Sales Variable expenses Contribution margin 1000 401 603 75,000 22.000 153,000 Het operating Income 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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