On January 1, 2024, Ott Co. sold goods to Flynn Company. Flynn signed a zero-interest-bearing note requiring payment of $160,000 annually for seven years. The first payment was made on January 1, 2024. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows: ?Period PresentValue of 1 at 10%? Present Value of Ordinary Annuity of 1 at 10% 6?.5645? 4.3553 7?.5132? 4.8684 Ott should record sales revenue in January 2024 of

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.