Question

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 your answer to 2 decimal places.) gree of leverage 2 using he degree of operating leverage, estimate the impact on net operating income of a 19% increase in sales. Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places i.e .1234 should be entered as 12.34).) t operating income

Answer 1