Which statement below is not a guideline for developing an organizational chart? A. Make sure the CEO of the firm does not also carry the title of President. B. Avoid a functional-type structure for all but the smallest firms. C. Make sure the chair of the board is not also the CEO or president of the company. D. Make sure every executive has one boss; lines in the chart should be drawn accordingly, assuring unity of command. E. Make sure only presidents of divisions report to the CEO.

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.