Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help fix the wrong ones Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent
please help fix the wrong ones
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 141,000 1000 Variable expenses 56, 400 40 Contribution margin 84,600 601 Fixed expenses 21,000 Net operating income $ 63,600 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 17% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 17% Increase in unit sales. Complete this question by entering your answers in the tabs below. Required) Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Ratu Required 2 > 1.33 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1000 40 Sales Variable expenses Contribution margin Tixed expenses Net operating income Amount $ 141,000 56,400 84,600 21.000 $ 63,600 603 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 17% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in unit sales. Complete this question by entering your answers in the tabs below, Required 1 Resired 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 17% 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).) increases Net operating income by 22.61% Required 1 Required 2 Required 3 monstruct a new contribution format income statement for the company as Percent of Sales Engberg Company Contribution Inot-ne Statement Amount $ 16,497 6,599 X 9,898 ales 100% 60 X % ariable expenses ontribution margin xed expenses 40 % 21,000 $ (11,102) et operating income Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started