Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 86,000 100% Variable expenses 34,400 40% Contribution margin 51,600 60% Fixed expenses 40,420 Net operating income $ 11,180 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 7 % increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales.

ces Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Fixed expenses total $183,750 per month. Flight Dynamic $ 150,000 Required 1 Product Required 2 Required 3 80% Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? Break-even point in dollar sales Sure Shot $ 250,000 36% Complete this question by entering your answers in the tabs below. Total $ 400.000 > What is the company's break-even point in dollar sales based on the current sales mix? Note: Do not round intermediate calculations.

Subject : - Accounting

Refer to the data in requirement 5. Assume the new plant is built and that next year the company manufactures and sells 32,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. Note: Round "Degree of operating leverage" to 2 decimal places. Show less         Northwood Company Contribution Income Statement           0       $0 Degree of operating leverage

McGrath electric is a service firm with current service sales of 4,794,549 and a 57% contribution margin. It’s fixed costs are 1,217,297. If there is a 13% in sales, compute the percentage of net increase in operating income for McGrath. Round to the nearest hundred, two decimals.

Operating Leverage Cartersville Co. reports the following data: Sales $485,800 Variable costs 291,500 Contribution margin $194,300 Fixed costs 156,200 Income from operations $38,100 Determine Cartersville Company's operating leverage. Round your answer to one decimal place.

Operating Leverage Cartersville Co. reports the following data: Sales $455,200  Variable costs (250,400) Contribution margin $204,800  Fixed costs (146,300) Operating income $58,500  Determine Cartersville Co.’s operating leverage. Round your answer to one decimal place.

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Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:     Amount   Percent of Sales Sales $ 134,000   100 % Variable expenses   53,600   40 % Contribution margin   80,400   60 % Fixed expenses   15,000       Net operating income $ 65,400           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 14% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 14% increase in sales.

Sarratt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $38,000. Assume that the company's sales for May are expected to be $97,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Net operating income