Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual...

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Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Percent of Amount Sales $ 137,000 100% 40% Sales Variable expenses 54,800 Contribution margin 82, 200 60% Fixed expenses 19,000 Net operating income 63, 200 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 22% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 22% 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 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 22% 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 3 > Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 22% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % % < Required 2 Required 3 Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Percent of Amount Sales $ 137,000 100% 40% Sales Variable expenses 54,800 Contribution margin 82, 200 60% Fixed expenses 19,000 Net operating income 63, 200 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 22% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 22% 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 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 22% 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 3 > Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 22% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % % < Required 2 Required 3

Answer rating: 100% (QA)

Ans 1 Degree of operating leverage Degree of operating leve... View the full answer