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hts Skipped eBook Hint Print ferences Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Salen 100% 40% 60% Sales Variable expenses Contribution margin Fixed expensen Net operating income Amount $ 144,000 57,600 86,400 20,000 $ 66,400 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 15% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 15% 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 >

8 s coped Book Hint Print rences Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Amount $ 144,000 57,600 86,400 Fixed expenses 20,000 Net operating income $ 66,400 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 15% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 15% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 15% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income < Required 1 Required 3 > C

8 1.36 points Skipped eBook Hint Print 191 References Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows: Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin 86,400 Fixed expenses 20,000 Net operating income $ 66,400 Amount $ 144,000 57,600 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 15% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 15% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Construct a new contribution format income statement for the company assuming a 15% increase in unit sales. Engberg Company Contribution Income Statement Amount Required 2 $ 0 0 Percent of Sales < Required 2 % 0% Required 3 >