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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 points Amount $ 137.000

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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 sales points Amount $ 137.000 54,800 92,200 25,000 $57,200 Variable expenses Contribution margin Fixed expenses Net operating income 2 044747 Book Required: Hint 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 15% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 15% increase in sales

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