Engberg Company installs lawn sod in home yards. The companys most recent monthly contribution format income statement follows:

		Amount		Percent of Sales
Sales	$	80,000		100	%
Variable expenses		32,000		40	%
Contribution margin		48,000		60	%
Fixed expenses		38,000
Net operating income	$	10,000

3. Construct a new contribution format income statement for the company assuming a 5% increase in sales.

Construct a new contribution format income statement for the company assuming a 5% increase in sales.

Need answers for Percentage of Sales only

Engberg Company
Contribution Income Statement
	Amount	Percent of Sales
Salesselected answer correct	$84,000selected answer correct		%
Variable expensesselected answer correct	33,600selected answer correct		%
Contribution marginselected answer correct	50,400		%
Fixed expensesselected answer correct	38,000selected answer correct
Net operating incomeselected answer correct	$12,400