Calip Corporation, a merchandising company, reported the following results for October: Sales $433,000 Cost of goods sold (all variable) $173,000 Total variable selling expense $18,000 Total fixed selling expense $9,900 Total variable administrative expense $10,000 Total fixed administrative expense $25,600 The contribution margin for October is: Group of answer choices $260,000 $232,000 $196,500 $369,500

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.