Sally works an hourly office job from 8 a. m. until 4: 30 p. m., monday through friday, with an hour each day for lunch. lunch is unpaid, so her weekly hours total 37½. one friday, her boss harry asks her to stay an extra hour to complete a project. if she stays the extra hour, she will be entitled to overtime pay for that hour.

a. true

b. false

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.