Question: hi, I need help with this question can you please show in steps how you got the answers. thank you Exercise 5-9 (Algo) Compute and

hi, I need help with this question can you please show in steps how you got the answers. thank you

hi, I need help with this question can you please show insteps how you got the answers. thank you Exercise 5-9 (Algo) Computeand Use the Degree of Operating Leverage (LO5-8] Engberg Company installs lawn

Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40 Amount $ 140,000 56,000 84,000 18,000 $ 66,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 60% 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit 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 11% 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):). Net operating income by % Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 0 % $ 0

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