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Please answer all the required questions. Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: begin{tabular}{lrr}
Please answer all the required questions.
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: \begin{tabular}{lrr} & Amount & PercentofSales \\ Sales & $84,000 & 100% \\ Variable expenses & 33,600 & 40% \\ \cline { 2 - 3 } Contribution margin & 50,400 & 60% \\ \cline { 2 - 3 } Fixed expenses & 39,480 \\ \cline { 2 - 3 } Net operating income & $10,920 & \\ \hline \end{tabular} What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Required 3 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 decimal places. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).) Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Engberg Company } & \\ \hline Contribution Income Statement & \\ \hline & & Amount & Percent of Sales \\ \hline & & & % \\ \hline & & & % \\ \hline & & % \\ \hline & & & \\ \hline \end{tabular} Required 2 Required 3>Step by Step Solution
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