ING II JESTION 7
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Equanimity Limited manufactures two products Conti and Gala. Fixed costs equal
$750,126. Each Conti sells for $4,40 and has variable costs of $1.76 and each Gala sells
for $6.00 and has variable costs of $4.50
"Assuming the sales mix of 1 Conti to 1.5 Gala, how many Conti and Gala must be
sold to breakeven?"
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stion
Select one:
a. Conti 76,700, Gala 115,050
O b. Conti 230,100, Gala 153,400
O c. None of the responses are correct.
Conti 153,400, Gala 230,100

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.