Ginny has opened a new startup company in web design. within the first month of business, the startup agrees to maintain an accounting firm's website in exchange for someone doing their tax returns. which of the following principles of economic interaction best describes this scenario? -all costs are opportunity costs.-when markets do not achieve efficiency, government intervention can improve overall welfare.-markets allocate goods effectively.-there are gains from trade.

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.