Question: Hello! I'm having some trouble with this practice problem. I was able to complete some of it, but not all of it. Engberg Company installs

Hello! I'm having some trouble with this practice problem. I was able to complete some of it, but not all of it.

Hello! I'm having some trouble with this practice problem. I was able

to complete some of it, but not all of it. Engberg Company

installs lawn sod in home yards. The company's most recent monthly contribution

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% Amount $ 135,000 54,000 81,000 16,000 $ 65,000 Sales Variable expenses Contribution margin Fixed expenses 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 17% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 17% 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 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 17% 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 17% increase in sales. Engberg Company Contribution Income Statement Amount Sales Variable expenses Contribution margin 0 Fixed expenses Net operating income $ 0 Percent of Sales % % 0 %

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