Exercise 6-9 Compute and Use the Degree of Operating Leverage (LO6-8) Engberg Company installis lawn sod in home yards. The company's most recent monthly contribution format income stateme Percent of Sales 1001 405 608 Mount $ 122,000 48,800 73,200 23,000 $ 50,200 Sales Variable expenses Contribution margin Fixed expenses Net 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 sales 3. Construct a new contribution format income statement for the company assuming a 17% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Rogured Required 2 > MacBook Pro Exercise 6-9 Compute and Use the Degree of Operating Leverage [LO6-8) Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Yixed expenses Net operating income Amount $ 122,000 48,800 73,200 23,000 $ 50,200 Percent of Sales 1000 40 608 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 sales. 3. Construct a new contribution format income statement for the company assuming a 17% Increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 17% Increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (1.6 0.1234 should be entered as 12.34).) Net operating income by Exercise 6-9 Compute and Use the Degree of Operating Leverage (L06-8) 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 $ 122,000 48,800 73,200 23,000 $50,200 Percent of Sales 1008 409 600 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 sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 17% Increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % Required 2
