Answer Happy

es Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales. Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 143,000 57,200 85,800 24,000 $ 61,800 Percent of Sales 100% 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales.
What is the company's degree of operating leverage? (Round your answer to 2 decimal places Degree of operating leverage
Using the degree of operating leverage, estimate the impact on net operating income of a 27% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (l.e.1234 should be entered as 12.34).) Net operating income < Required 1 Required 3 >
Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % % < Required 2 Required 3 >