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 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? (Round your answer to 2 decimal places.) Using the degree of operating leverage, estimate the impact on net operating income of a 6% increase in unit sales. (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).) \begin{tabular}{|l|l|l} \hline Required 1 & Required 2 & Required 3 \\ \hline \end{tabular} Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Engberg Company Contribution Income Statement \begin{tabular}{|l|l|l|l|} \hline & Amount & Percent of Sales \\ \hline & & & % \\ \hline & & & % \\ \hline & & & % \\ \hline & & & \\ \hline \end{tabular} Required 2 Required 3> 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 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? (Round your answer to 2 decimal places.) Using the degree of operating leverage, estimate the impact on net operating income of a 6% increase in unit sales. (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).) \begin{tabular}{|l|l|l} \hline Required 1 & Required 2 & Required 3 \\ \hline \end{tabular} Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Engberg Company Contribution Income Statement \begin{tabular}{|l|l|l|l|} \hline & Amount & Percent of Sales \\ \hline & & & % \\ \hline & & & % \\ \hline & & & % \\ \hline & & & \\ \hline \end{tabular} Required 2 Required 3>
