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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
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 Acount $ 143,000 57,200 35,800 15.000 $ 70,800 Percent of Sales 100% 40% 60x 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 1 Required 2 Required a What is the company's degree of operating leverage7 {Round your answer to 2 decimal placeo) Degree of operating leverage 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 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 (1234 should be entered as 12.34).) Net operating income 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 in unit sales Engberg Company Contribution Income Statement Amount Percent of Sales %
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