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Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $16 per unit. The

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Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $6,000. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1000 405 600 Amount $ 134,000 53,600 80,400 20,000 $ 60,400 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 22% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 22% increase in unit 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 Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 22% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income increases by % Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 22% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 0 % $ 0

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