8 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 120,000 100% Variable expenses 48,000 Contribution margin 72,000 Fixed expenses 21,000 Net operating income $ 51,000 408 60% Print 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 11% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 11% 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 leverage Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 11% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Net operating income by % Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 11% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % %