Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format...
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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 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 146,000 58,400 87,600 17,000 $ 70,600 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 27% increase in sales 3. Construct a new contribution format income statement for the company assuming a 27% increase in sales Complete this question by entering your answers in the tabs below Required 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
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