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pls anwser all 3 parts correctly Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales
pls anwser all 3 parts correctly
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 $ 133,000 53,200 79.800 17,000 $ 62,800 Percent of Sales 1000 40 601 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 20% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. 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 lovorage Percent of Sales 1008 40 601 Amount $ 133,000 53,200 79,800 17.000 $ 62,800 Sales Variable expenses Contribution margin Fixed expenses Net operating income 09:33 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 20% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales, + Complete this question by entering your answers in the tabs below. nces Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 20% 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).) Net operating income by 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 20% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % % Step by Step Solution
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