Harold is an accountant with Brain Industries and Matilda is in the marketing department. They are discussing the pricing strategy for a new product the company will soon release. Their recommendations will be presented to the board of directors at the next board meeting. Matilda has discussed profit maximization and market-sharing goals for the product. She asks Harold what product survival pricing entails and he explains it as well as return-on-investment pricing. Of the pricing strategies they have discussed, which one is not an obtainable goal?

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.