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Business, 08.10.2020 08:01 devbar3416

Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales$126,000 100% Variable expenses 50,400 40% Contribution margin 75,600 60% Fixed expenses 23,000 Net operating income$52,600 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales.

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Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution form...
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