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  3. required 3 format is as follows; engberg company

Required 3 format is as follows; Engberg Company installs lawn sod in home...

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Accounting

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Required 3 format is as follows;

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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 Amount Sales Variable expenses 100% 40% 127,000 50,800 Contribution margin 60% 76,200 Fixed expenses 20,000 56,200 Net operating income 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 15% increase in sales. 3. Constructa new contribution format income statement for the company assuming a 15% 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 15% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % Required 2 Required 3

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