Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $12,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $9,000. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise

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.