Question: Hello! I'm having some trouble with this practice problem. Any help is greatly appreciated! I filled out some of the income statement, but I'm having

Hello! I'm having some trouble with this practice problem. Any help is greatly appreciated! I filled out some of the income statement, but I'm having trouble with the rest of it.

Hello! I'm having some trouble with this practice problem. Any help is

greatly appreciated! I filled out some of the income statement, but I'm

having trouble with the rest of it. Engberg Company installs lawn sod

in home yards. The company's most recent monthly contribution format income statement

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 $ 135,000 54,000 81,000 20,000 $ 61,000 Percent of Sales 100% 40% 60% 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 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 10% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Net operating income by % Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 10% increase in sales. Engberg Company Contribution Income Statement Amount Sales Variable expenses Contribution margin 0 Fixed expenses 20,000 Net operating income $ 20,000) Percent of Sales % % 0 %

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