! Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $ 125 80 Selling price Variable expenses Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income by Required information (The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $ 125 80 Selling price Variable expenses Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. a. Refer to the original data. How much will net operating income increase (decrease) per month if the mpany uses higher-quality components that increase the variable expense by $5 per unit and crease unit sales by 20%. b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? Yes No Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $ 125 80 Selling price Variable expenses Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and ncrease unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? OYes No Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $17 per unit. The company's monthly fixed expense is $11,400. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. baskets 2. Break-even point in unit sales Break-even point in dollar sales Break-even point in unit sales Break-even point in dollar sales 3. baskets Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $ 147,000 58,800 88,200 22,000 $ 66,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% 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 leverage Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $ 147,000 58,800 88,200 22,000 $ 66,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 29% increase in un your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1 entered as 12.34).) Net operating income by % Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $ 147,000 58,800 88,200 22,000 $ 66,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% 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 29% increase in unit sal Engberg Company Contribution Income Statement Amount Percent of Sales % % % ! Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $ 125 80 Selling price Variable expenses Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income by Required information (The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $ 125 80 Selling price Variable expenses Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. a. Refer to the original data. How much will net operating income increase (decrease) per month if the mpany uses higher-quality components that increase the variable expense by $5 per unit and crease unit sales by 20%. b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? Yes No Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $ 125 80 Selling price Variable expenses Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and ncrease unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? OYes No Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $17 per unit. The company's monthly fixed expense is $11,400. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. baskets 2. Break-even point in unit sales Break-even point in dollar sales Break-even point in unit sales Break-even point in dollar sales 3. baskets Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $ 147,000 58,800 88,200 22,000 $ 66,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% 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 leverage Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $ 147,000 58,800 88,200 22,000 $ 66,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 29% increase in un your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1 entered as 12.34).) Net operating income by % Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $ 147,000 58,800 88,200 22,000 $ 66,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% 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 29% increase in unit sal Engberg Company Contribution Income Statement Amount Percent of Sales % % %