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need help. specially for requirement 3. please add work/steps. thank you Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution
need help. specially for requirement 3. please add work/steps. thank you
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 $ 145,000 58,000 87,000 15,000 $72,000 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 21% Increase in sales 3. Construct a new contribution format income statement for the company assuming a 21% increase in sales Answer is not complete. 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 - 121 Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 21% increase in sales. (Do non round Intermediate calculations. Round your percentage answer to 2 decimal places (.e 0.1234 should be entered as 12 Net operating income Increases by 25.41 Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 21% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales Variable expenses Contribution margin Fixed expenses % % 0 0 15,000 Net operating income (15.000 Step by Step Solution
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