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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 Sale 1001 Mount 5122,000 40.000

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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 Sale 1001 Mount 5122,000 40.000 73,200 25.000 548.200 Sales Variable expenses Contribution margin Fixed expensen Het operating income 601 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 14% increase in sales, 3. Construct a new contribution format Income statement for the company assuming a 14% increase in sales. Complete this question by entering your answers in the tabs below. required 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 > Percent of Sales 1008 405 601 Amount $ 122,000 48,800 73,200 25,000 $ 48,200 Sales Variable expenses Contribution margin Fixed expenses Net 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 14% Increase in sales. 3. Construct a new contribution format Income statement for the company assuming a 14% increase in 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 14% increase in 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).) Not operating income Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 14% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 % 0 s 0

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