Managerial Accounting (ACC-2220)

Exercise 6.9 (Algo) 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 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 contrbution format income statement for the company assuming a 6% increase in unit sales, What is the company's degree of operating leverage? (Round your aniwer 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 dedmal places. Round your percentage answer to 2 decimal places ( (. e . 1234 should be. intered as 12,341 )) Construct a new contribution format income statement for the company assuming a 6% increase in unit sales