Question

               Engberg company installs law sod in home yards. The company’s most recent monthly contribuito format income statement follows:

	Amount ($)	Percent of sales (%)
Sales	80,000	100
Variable expenses	32000	40
Contribution margin	48000	60
Fixed expenses	38000
Net operating incoming	10000

Construct a new contribution format income statement for the company assuming a 5% in crease in sales?

	Amount	Percent of sales
sales
Variable expenses
Contribution margin	0	0
Fixed expenses
Net operating loss	0

Answer 1

Amount Percent of calest) Sales $84000 32 600 Vaiable Eapen Sej 401. Conmbutim ma1gin 50400 60Y Facd eapen ses 3 8000 Net opeiating In Lome $12400 Nct Sales 'mueate is 680000x 51.5 yo/. ahich Ial.i vaiabe cosr (ie yo00 qo1.) 1600 Net mareaje n on cem 4000-1600 2400 Fiacd e pnses wiu not mcrease with res peut to Sales Ge Consranr nes etive o leved of actwi .