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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 $ 139,000 55,600 83,400 15,000 $. 68,400 Percent of Sales 100 40% 60% 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 18% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 18% 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 Required 2 > Engberg Company instalis lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 139,000 100 Variable expenses 55,600 40 Contribution margin 83,400 605 Fixed expenses 15,000 Net operating income $ 68,400 51 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 18% increase in sales 3. Construct a new contribution format income statement for the company assuming a 18% increase in sales. aces 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 18% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (le 1234 should be entered as 12.34) Net operating income increases by % Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1084 401 604 Amount $ 139,000 55,600 83,400 15,800 $ 68,400 Sales Variable expenses Contribution margin Fixed expenses Net operating income 36 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 18% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 18% increase in sales. + nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered las 12:34).) Not operating income increases by

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