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Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses

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Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 120,000 51,200 76,800 24,000 $ 52,800 Percent of Sales 1000 400 600 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 22% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 22% 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 Prey 1 of 13 !!! Next > GUN 608 variable expenses Contribution margin Fixed expenses Net operating income 51,200 76,800 24,000 $ 52,800 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 22% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 22% increase in unit sales. 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 22% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income by % Prey 1 of 13 !!! Next > 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 22% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 22% 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 22% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %

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