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Exercise 5-3 (Algo) Compute and Use the Degree of Operating Leverage [LO5-3] Engberg Company installs lawn sod in home yards. The company's most recent monthly

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Exercise 5-3 (Algo) Compute and Use the Degree of Operating Leverage [LO5-3] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. What is the company's degree of operating leverage? Note: Round your answer to 2 decimal places. Exercise 5-3 (Algo) Compute and Use the Degree of Operating Leverage [LO5-3] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, estimate the impact on net operating income of a 6% increase in unit sales. Note: 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 ). Exercise 5-3 (Algo) Compute and Use the Degree of Operating Leverage [LO5-3] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales

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