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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
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: sele Variable expenses Contribution margin Fixed expennen Not operating income Percent of Amount $ 120,000 1000 51,200 40 76,800 604 16,000 $ 60,800 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 unlt sales. 3. Construct a new contribution format Income statement for the company assuming a 16% Increase in unlt 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.) Degroo of operating leverage Required Required 2 >
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