1. What is the companys degree of operating leverage?

2. Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in sales.

3. Construct a new contribution format income statement for the company assuming a 18% increase in sales.

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 143.000 57,200 85,800 21,000 $ 64,800 Percent of Sales 1008 400 606 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 18% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 18% Increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating loverage Required 1 Required 2 > Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income Required 1 Required 2 Required 3 Construct a new contribution format Income statement for the company assuming a 18% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales ( Required 2 Required a