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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 100% 40% 60% Amount
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% 60% Amount $ 139,000 55,600 83,400 22,000 $ 61,400 Sales Variable expenses Contribution margin Fixed expenses Net 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 13% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 13% 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 13% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % 0 0%
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