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This is all one question, has 3 requirements thank you! Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format
This is all one question, has 3 requirements thank you!
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 147,000 58,800 Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income 88,200 20,000 $ 68, 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% 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 Required 1 Required 2 Required 3 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall break-even point Required 1 Required 2 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Lucido Products Contribution Income Statement Claimjumper Makeover Total Net operating income (loss)Step by Step Solution
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