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Exercise 5-9 (Algo) Compute and use the Degree of Operating Leverage (L05-8) 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 (L05-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable contation margin Amount 141,000 56400 34,600 20.000 364.600 Percent or sales 100% 40 SOS as 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 17% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in unit sales Com

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