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Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Sales Variable expenses Contribution
Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 126,000 50,400 75,600 22,000 $ 53,600 Percent of Sales 1008 40% 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 11% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in 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 Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Percent of Sales 100$ 40% 60% Amount $ 126,000 50,400 75,600 22,000 $ 53,600 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 11% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in 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 11% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %
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