Question

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 131,000 52,400 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income 603 78,600 17,000 $ 61,600 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 sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in sales. Answer is not complete. 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 17% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales 153.270 Variable expenses Contribution margin 61,308 91,962 17,000 $ 74,962 Fixed expenses Net operating income < Prev 7 of 9 Next >

Need precent of sales.

Answer 1

Engberg Company

Contribution Income Statement

Sales	$153,270	100%
Variable expenses	$61,308	40%
Contribution margin	$91,962	60%
Fixed expenses	$17,000
Net operating income	$74,962