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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 Amount $ 124,000 49,600 74,4ee 25,888 $ 49,480 Percent of Sales 100% 48 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 21% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 21% Increase in unit sales
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