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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

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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 Net operating income Amount $ 126,000 50,400 75,00 22,000 $ 53,600 Percent of Sales 100% 40 Ger Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating loverage, estimate the impact on net operating income of a 16% Increase in unit sales 3. Construct a new contribution format Income statement for the company assuming a 16% increase in unft 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 16% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales 5 + OS $ 0

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