Hello tutor please provide correct answer this financial accounting question GreenSpire Landscaping Inc. specializes in rooftop garden installations. The company'slatest monthly contribution format income statement is shown below:Amount% of SalesSales$160,000Variable Expenses$64,000Contribution Margin$96,000Fixed Expenses$24,000Net Operating Income $72,0001. Compute the company's degree of operating leverage (DOL).2. Using the DOL, estimate the impact on net operating income if sales increase by 23%.

Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…

Answered: GreenSpire Landscaping Inc. specializes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Percent of Amount Sales $ 88,000 100% 35,200 40% 52,800 60% 42,240 $ 10,560 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 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales.
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 94,000 100% Variable expenses 37,600 40 Contribution margin 56,400 60% Fixed expenses 43,240 Net operating income $ 13,160 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 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in unit sales.
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 88,000 35,200 52,800 41,360 $ 11,440. Percent of Sales 100% 40% 60% 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales.
Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows: Percent of Sales Amount Sales 100% $ 127,000 50,800 48% Variable expenses Contribution margin 76,200 60% Fixed expenses 19,000 Net operating income $ 57,200 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 27% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales ✔S 34,290 X 13,716 Variable expenses Contribution margin 20,574 Fixed expenses 19,000 Net…
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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 86,000 34,400 51,600 39,560 $ 12,040 Required: 1. What is the company's degree of operating leverage? Required 1 Percent of Sales 100% 40% 60% 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.)
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 134,000 53,600 100% Variable expenses 40% Contribution margin 80, 400 60% Fixed expenses 15, 000 $65,400 Net operating income Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leveráge, estimate the impact on net operating income of a 12% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in sales. ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
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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 $ 84,000 100% Variable expenses 33,600 40% Contribution margin 50,400 60% Fixed expenses 40,320 Net operating income $ 10,080 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 an 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming an 8% increase in unit sales. Required 1 Degree of operating leverage Required 2 & 3:see doc attached

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