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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: Percent of Amount

Suburban Landscape provides landscaping design and installation for residential and commercial properties. The companys receRequired 1Required 2Required 3Using the degree of operating leverage, estimate the impact on net operating income of a 22%Required 1Required 2Required 3Construct a new contribution format income statement for the company assuming a 22% increase

Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Percent of Amount Sales $ 137,000 100% 40% Sales Variable expenses 54,800 Contribution margin 82, 200 60% Fixed expenses 19,000 Net operating income 63, 200 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 22% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 22% 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 < Required 1 Required 2 > Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 22% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Net operating income by % < Required 1 Required 3 > Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 22% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % % < Required 2 Required 3

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