Check my work mode : This shows what is correct or incorrect for the work you ha

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Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not in Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent of Sales variable expenses Contr lbution sargin Pixed expenses Net operating income 148,00 100 88,800 65,800 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 13% increase in sales. construct a new contribution format income statement for the company assuming a t3% increase in sales Answer is not complete. Complete this question by entering your answers in the tabs below Required 1 Required 2Required 3 construct a new contribution format income statement for the company assuming a 13% increase in sales. Income Statement

Explanation / Answer

Answer:-

If company increase their sales by 13% then net opreating income will increase by $11544 ($77344-$65800).

Engberg Company Contribution Income statement Particulars Amount Percent of $ sales Sales $148000*113% 167240 100% Less:-Variable expenses $59200*113% 66896 40% Contribution 100344 60% Less:Fixed Expenses 23000 Net Opreating Income 77344

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