a. An increase in your nominal income and a decrease in your real income might occur simultaneously if multiple choice 1 your real income increases at the same rate as the cost of living increases. your real income increases more than the cost of living increases. your nominal income increases more than the cost of living increases. your nominal income increases less than the cost of living increases. b. The losers from inflation are those with multiple choice 2 incomes rising as fast as the rate of inflation. significant debt. fixed incomes in nominal terms. no savings.

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.