Question

Engberg Company instais laan sod in home yards. The companys most recent monthly contribution format income statement follows 149 000 100% 40% 60% Variable expenses Contrbution margin Foxed expenses Net operating income 59.600 89,400 24.000 5 65,400 Required: 1 Compute the companys degree of operating leverage. (Round your answer to 2 decimal places.) 2 Usng the degree of operating leverage, estimate the impact on net operating income of a 11% ncrease r, sans (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (ie.1234 should be entered as 12.34)
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Answer #1
1) Degree of operating leverage 1.37
(Contribution/net income)
2) Net operating income increase by 15.07
(1.37*11%)
( due to rounding the answer if incorrect, then please
try 15.04%)
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