Question: Exercise 5-9 Compute and Use the Degree of Operating Leverage (L05-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution

 Exercise 5-9 Compute and Use the Degree of Operating Leverage (L05-8)

Exercise 5-9 Compute and Use the Degree of Operating Leverage (L05-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Amount 5 141, eee 56,40e lees 84, see variable expenses Contribution margin Fixed expenses Net operating income $ 63.60e Required: 1. What is the company's degree of operating leverage? 12. Using the degree of operating leverage, estimate the impact on net operating income of a 13% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 13% 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 2 >

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