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%) | ||||||
Engberg Company instais laan sod in home yards. The company's most recent monthly contribution format income...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement folows Amount s 149.000 Sales 100% 40% 60% Variablo expenses Contribution margin Fixed expenses Net operating inceme 89 400 24,000 S 65,400 Required: 1. Compute the company's degree of operating leverage (Round your answer to 2 decimal places.) 2. using the degree of operat g leverage estr ale he impact nne opera ng inco e of a 11% increase nsm (Round your Round...
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Exercise 3-9 Compute and Use the Degree of Operating Leverage [L03-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent Amount $144,000 57,600 86,400 22,000 of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income 60% $ 64,400 Required 1. Compute the company's degree of operating leverage. (Round...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 147,000 58.800 88,200 23,000 $ 65,200 Percent of Sales 100% 40% 60% Required: 1. Compute the company's degree of operating leverage (Round your answer to 2 decimal places.) Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 11% increase...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $148,000 59.200 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses 88,800 24,000 60% Net operating income 64,800 Required 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 15% increase in sales....
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount 140,000 56,000 84,000 17,000 67,000 Percent of Sales 100% 40% 60% $ Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 27% increase in...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 137,000 54,800 Percent of Sales 100% 403 608 Sales Variable expenses Contribution margin Fixed expenses Net operating income 82,200 19,000 $ 63,200 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...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 148,000 59,200 Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income 88,800 23,000 $ 65,800 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 12% increase in sales. 3. Construct a new contribution format income statement...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 131,000 52,400 78,600 23,000 $ 55,600 Percent of Sales 100% 40% 60% 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 17% increase in unit sales. 3. Construct a new contribution format income...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% Amount Sales $142,000 Variable expenses 56,800 Contribution margin 85,200 Fixed expenses 19,000 Net operating income $ 66,200 40% 60% 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 24% increase in sales 3. Construct a new contribution format income statement for...
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 53,200 79,800 25,000 $ 54,800 Sales Variable expenses Contribution margin Fixed expenses 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 24% increase in sales. 3. Construct a new contribution format income statement...