Exercise 6-9 Compute and Use the Degree of Operating Leverage [LO6-8]Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent ofSalesSales$80,000 100%Variable expenses 32,000 40%Contribution margin 48,000 60%Fixed expenses 38,000 Net operating income$10,000 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 sales.3. Construct a new contribution format income statement for the company assuming a 5% increase in sales.

True or false: a smart store layout moves customers in and out as fast as possible. a) true b) false

Simon, aged 10, is invited to a classmate's birthday party at an exclusive ski resort on march 15th. the day will include 4 hours of snowboarding, lunch and birthday cake. simon's mother checks a box on the invitation that says "yes, we will attend" and returns it to the classmate's address. unfortunately, they later don't attend the party when simon comes down with the flu. on march 17th, simon's mother receives an invoice in the mail from simon's classmate for $35 that says, "party no-show fee." can simon's classmate collect the fee?

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.