Question: engberg company installs lawn sod in home yards the companys...
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:
|Net operating income||$||65,600|
Compute the company’s degree of operating leverage. (Round your answer to 2 decimal places.)
Using the degree of operating leverage, estimate the impact on net operating income of a 28% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).)
Construct a new contribution format income statement for the company assuming a 28% increase in sales.