Tamarisk company is constructing a building. construction began on february 1 and was completed on december 31. expenditures were $2,004,000 on march 1, $1,284,000 on june 1, and $3,024,560 on december 31. tamarisk company borrowed $1,101,510 on march 1 on a 5-year, 12% note to finance construction of the building. in addition, the company had outstanding all year a 10%, 5-year, $2,417,700 note payable and an 11%, 4-year, $3,702,800 note payable. compute the weighted-average interest rate used for interest capitalization purposes.

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.