Amelia loves to sew, and she designs and sews much of her own clothing. right now, she’s working in a retail store selling high-end women’s clothing, but she’s hoping to begin working for herself. she expects to do it all once when she opens her own clothing line. what will her responsibilities be if she opens her own clothing line?

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.