Answered step by step
Verified Expert Solution
Link Copied!

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
image text in transcribed
image text in transcribed
image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountability Ethics And Sustainability Of Organizations

Authors: Sandro Brunelli, Emiliano Di Carlo

3rd Edition

3030311929, 9783030311926

More Books

Students also viewed these Accounting questions