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

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Accounting

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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 133,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 53,200 79,800 23,000 $ 56,800 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 28% increase in sales 3. Construct a new contribution format income statement for the company assuming a 28% increase in sales Complete this question by entering your answers in the tabs below Required1Required 2Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage

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