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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 Amount Sales Sales $147,000 100%

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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 Amount Sales Sales $147,000 100% Variable expenses 58,800 404 Contribution margin 88,200 50% Fixed expenses 25.000 Net operating income 563.200 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 29% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit 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) Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal p Degree of operating leverage Required 1 Required 2 > Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 29% 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):) Not operating income by 1 % 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 29% increase Engberg Company Contribution Income Statement Amount Percent of Sales % % %

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