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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 1008 405 608 Amount

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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 1008 405 608 Amount $ 127,000 50.800 76,200 18.000 $ 58,200 Sales Variable expenses Contribution margin Pixed 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 16% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 16% 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 loverago Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1001 405 601 Amount $ 127,000 50, 800 76,200 18.000 $ 58,200 Salon 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 16% increase in sales 3. Construct a new contribution format income statement for the company assuming a 16% 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 16% 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 by Engberg Company instalis lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Salon 100% 400 601 mount $ 127,000 50.800 76,200 18.000 $ 58,200 Sales Variable expenses Contribution margin Fixed expenser 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 16% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 16% 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 16% increase in sales. Engberg Company Contribution Income Statement Arnount Percent of Sales % % %

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