Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms incur high transportation costs to distribute its products. Juggernaut, Inc. wants to enter foreign markets via exports. How can Juggernaut, Inc. avoid incurring high transport costs when exporting its bulk products?

A. setting up subsidiaries irrespective of market reach
B. entering into a turnkey project with a foreign firm
C. manufacturing bulk products regionally
D. taking a minority equity interest
E. reducing the quantity of the product offering

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.