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I alreadh fogured out requiremenr 1 & 2. Does anyone know how to conplete the table on Requirement 3? Engberg Company Installs lawn sod in
I alreadh fogured out requiremenr 1 & 2. Does anyone know how to conplete the table on Requirement 3?
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 $ 140,000 56,000 84,000 21,000 $ 63,000 Percent of Sales 1005 400 601 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 29% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit 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 29% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Salou % Variable expenses % Contribution margin 05 fed expenses 21.000 Net operating income 5 (21000) 0 Step by Step Solution
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