saved 7 Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LOS-8] 5 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows points Sales Variable expenses Contribution margin Fixed expenses Net operating income Book Percent of Sales 10 40 606 Amount $ 139,000 54.000 $2,200 21.000 $ 61,200 Hint Print 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 14% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 14% increase in unit sales References Complete this question by entering your answers in the tabs below Required 1 Required 2 Required What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 > 7 Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LO5-8] Engberg Company installs tawn sod in home yards. The company's most recent monthly contribution format income statement follow onts Sales Variable expenses Contribution margin Fixed expenses Net operating income Block Percent of Sales 100N 40 GOK Andunt $ 137,000 54,00 $2,200 21.000 $61,200 Hint Print 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 14% increase in unit Sales 3. Construct a new contribution format income statement for the company assuming a 14 increase in un sale References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Using the degree of operating leverage, estimate the impact on net operating income of a 14% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (Le.1234 should be entered as 12.34):) by 96 Net operating income 7 Exercise 5.9 (Algo) Compute and Use the Degree of Operating Leverage [LO5-8) 5 polets Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent of Sales TOOX 40 508 Book Amount 5 137.000 54,80 82,200 21,000 $ 61,200 Sales Variable expenses Contribution martin Fixed expenses Net operating income Ent 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 14% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 14% increase in unit Sales Prim o References Complete this question by entering your answers in the tabs below Required 1 Required 2 Required Construct a new contribution format Income statement for the company assuming a 14% increase in unit sales Engberg Company Contribution Income Statement Amount Percent of Sales 5 0 Os $ 0
