Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income...
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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Amount $ 138,000 55, 200 Percent of Sales 100 40 Contribution margin 82,800 60% Fixed expenses 24,000 $ 58, 800 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 23% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 23% 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 23% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (I.e.1234 should be entered as 12.34).) Not operating income by < Required 1 Required 3 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Amount $ 138,000 55, 200 Percent of Sales 100 40 Contribution margin 82,800 60% Fixed expenses 24,000 $ 58, 800 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 23% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 23% 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 23% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (I.e.1234 should be entered as 12.34).) Not operating income by < Required 1 Required 3
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Requirement 1 Degree of operating leverage Contribution margin Operating income Contribu... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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