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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $143.000 57,200 Percent of Sales 100%
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $143.000 57,200 Percent of Sales 100% 40% Sales Variable expenses 60% Contribution margin Fixed expenses 85,800 19,000 Net operating income $66,800 Required 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) gree of operating leverage 2, using the degree of operating leverage, estimate the impact on net operating income of a 13% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places(i.e.1234 should be entered as 12.34).) Net operating income by 3, Construct a new contribution format income statement for the company assuming a 13% increase in sales. Engberg Company Contribution Income Statement Total
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