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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution income...

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Accounting

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution income statement follows: Amount $146,000 58,400 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses 87,600 22,000 60% Net operating income 65,60 Required 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) gree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 28% increase in 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 3. Construct a new contribution format income statement for the company assuming a 28% increase in sales. Engberg Company Contribution Income Statement Total

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