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Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LO5-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly

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Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LO5-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 136,000 54,400 81,600 19,000 $ 62,600 Percent of Sales 1008 408 605 Required: 1. What is the company's de of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 20% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 Wally installs lawn sod in home yards. The company's most recent monthly contribution format income statemen Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 136,000 54,400 81,600 19,000 $ 62,600 Percent of Sales 1009 408 601 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 20% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below. Required: Reqqred2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 20% increase in unit 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 nswers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Engberg Company Contribution Income Statement Amount ences Percent of Sales % % Required 2 Required

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