90.2K

Verified Solution

Link Copied!

answer all parts please

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1008 408 Amount $ 122,000 48,800 73,200 25,000 $ 48,200 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 21 increase in sales. 3. Construct a new contribution format income statement for the company assuming a 21% 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 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 122,000 48,800 73,200 25,000 $ 48,200 Percent of Sales 100% 408 608 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 21% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 21% increa: intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e as 12.34).) Net operating income % Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 122,000 48,800 73,200 25,000 $ 48,200 Percent of Sales 1008 408 608 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 21% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 21% increase in s Engberg Company Contribution Income Statement Amount Percent of Sales % %

Answer & Explanation Solved by verified expert

See Answer