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Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 92,000 36,800 55,200 43,240 $ 11,960 Required 1 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 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Required 2 Required 3 I CILCIIL VI Complete this question by entering your answers in the tabs below. Sales 100% 40 60%

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 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Complete this question by entering your answers in the tabs below. What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) 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 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, estimate the impact on net operating income of a 8% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (1.e . 1234 should be entered as 12.34).) 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 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Complete this question by entering your answers in the tabs below. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales

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