Exercise $6-3($Algo$)$ Compute and Use the Degree of Operating Leverage $[$LO$6-3]$

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows:

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 $\backslash (5\backslash \%\backslash )$ increase in unit sales.

$3.$ Construct a new contribution format income statement for the company assuming a $5\backslash \%$ increase in unit sales.

Complete this question by entering your answers in the tabs below.

Required $1$

What is the company's degree of operating leverage?

Note: Round your answer to $2$ decimal places.

Exercise $6-3($Algo$)$ Compute and Use the Degree of Operating Leverage $[$LO$6-3]$

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 $5\backslash \%$ increase in unit sales.

$3.$ Construct a new contribution format income statement for the company assuming a $\backslash (5\backslash \%\backslash )$ increase in unit sales.

Complete this question by entering your answers in the tabs below.

Required $1$

Using the degree of operating leverage, estimate the impact on net operating income of a $5\backslash \%$ increase in unit sales.

Note: Round your intermediate calculations to $2$ decimal places. Round your percentage answer to $2$ decimal places $($i$.$e $.1234$ should be entered as $12\mathrm{.}34).$

Exercise $6-3($Algo$)$ Compute and Use the Degree of Operating Leverage $[$LO$6-3]$

References

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows:

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 $\backslash (5\backslash \%\backslash )$ increase in unit sales.

$3.$ Construct a new contribution format income statement for the company assuming a $\backslash (5\backslash \%\backslash )$ increase in unit sales.

Complete this question by entering your answers in the tabs below.

Required $2$

Required $3$

Construct a new contribution format income statement for the company assuming a $\backslash (5\backslash \%\backslash )$ increase in unit sales.