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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Peroent of Sales 1000 405 600 Amount

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Peroent of Sales 1000 405 600 Amount $ 126,000 50,400 75,600 22,000 $ 53,600 Sales Variable expenses Contribution margin Fixed expenses Not 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 11% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 11% Increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2) Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 126,000 50,400 75,600 22,000 # 53,600 Percent of Bales 1005 405 605 7:19 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 11% increase in soles. 3. Construct a new contribution format Income statement for the company assuming a 11% Increase in sales. Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 11% increase in sales. (Do not round Intermediate calculations. Round your percentage answer to 2 decimal places (1.0 0.1234 should be entered as 12.34).) Net operating 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 11% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 11% 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 11% Increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % %

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