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Engberg Company installs lawni sod in home yards. The company's most recent monthly contritution format income statement follows: Percent Amount of Sales Sales $ 1465.000

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Engberg Company installs lawni sod in home yards. The company's most recent monthly contritution format income statement follows: Percent Amount of Sales Sales $ 1465.000 100% Variable expensee 58411 40% Contribution maryn 37 800 Fixed expenses Net gering income $ 62 FO 25.000 Required: 1. Compute the company's degree of cfierating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage entered as 2. Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places i.e.1234 should 12.34). Net operating income 3. Construct a new contribution format income statement for the company assuming a 18% increase in sales. Engberg Company Contribution Income Statement Total

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