12 7 points ellock References 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 Required: Percent of Amount Sales $ 126,000 100% 50,400 40 75,600 60% 21,000 $ 54,600 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 25% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 25% increase in unit sales. Complete this question by entering your answers in the tabs below. Mc Graw Required 1 Required 2 Required 3 What is the company's degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverage Required 2 >