1 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses Contribution margin Fixed expenses $125,000 100% 50,000 40% 75,000 60% 22,000 Net operating income $ 53,000 Book ences me to search Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 22% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 22% Increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 22% increase in sales. Engberg Company Contribution Income Statement Sales Vanable expenses o Amount $ 156,460 Percent of Sales 100 % 40 % < Prev 1 of 8 Next > 28.