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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 1000 400 605 Ascunt
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1000 400 605 Ascunt $ 128,000 51,200 76,800 22,000 $ 54,800 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 16% Increase in sales 3. Construct a new contribution format income statement for the company assuming a 16% increase in 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 Reguirno 1 Required 2 > 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 3 128,000 51,200 76,800 22.000 $ 54,800 Dercent of Sales 1000 400 601 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 16% increase in sales. 3. Construct a new contribution format Income statement for the company assuming a 16% 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 16% increase in sales. (Round your Intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (..1234 should be entered as 12.34).) Netoperating income by 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 16% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 16% increase in 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 16% Increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %
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