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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% 408 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% 408 60% Amount Sales Variable expenses Contribution margin Fixed expenses Net operating income 147,000 58,800 88,200 15,000 $ 73,200 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 18% increase in sales 3. Construct a new contribution format income statement for the company assuming a 18% increase in sales Complete this question by entering your answers in the tabs below Required 1Required 2 Required3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
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