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need help Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement foll Sales Variable expenses Contribution margin
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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement foll Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 131,000 52,400 78,600 22,000 $ 56,600 Percent of Sales 100% 40% 60% 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 16% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 16% increase in unit salesStep by Step Solution
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