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8 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: 12.5 points 02:31:22 Sales Variable expenses Contribution margin Fixed expenses Not operating income Amount $ 150,000 60,000 90,000 22,000 $ 68,000 Percent of Sales 1008 40 600 Book Hint Print Required: ferences 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 unit sales. 3. Construct a new contribution format income statement for the company assuming a 17% 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 loverage Required 2 > 02:30:57 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 unit ssies 3. Construct a new contribution format income statement for the company assuming a 17% Increase in unit sales Book Hint Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 17% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %

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