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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 Sales 1001 405 603 Amount

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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 Sales 1001 405 603 Amount $ 138,000 55,200 82,800 19,000 $ 63,000 Sales Variable expenses Contribution margin Tixed expenses Not 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 19% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 19% 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 19% increase in unit sales. Percent of Sales % Engberg Company Contribution Income Statement Amount Sales Variable expenses Contribution margin 0 Fixed expenses $ 0 Net operating income % 0 %

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