Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Percent of Sales 100% 40% Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 120,00 48.000 72,000 16.000 $ 56,000 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 17% increase in sales 3. Construct a new contribution format income statement for the company assuming a 17% increase in sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent of Sales 100% Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 120,000 48.899 72,000 16.000 $ 56,000 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 17% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in 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 1796 Increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income 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 $ 120.000 48,000 72,000 16,000 $ 56,000 Percent of Sales 1001 40% 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 17% increase in sales 3. Construct a new contribution format income statement for the company assuming a 17% 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 17% Increase in sales Engberg Company Contribution Income Statement Amount Percent of Sales
