8 Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 10 points Skipped Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 129,000 51,600 77,400 22,000 $ 55,400 60% eBook Hint Required: Print 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 26% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 26% increase in unit sales. References 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 8 Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: points 10 points Skipped Percent of Sales 100% 40% Sales Variable expenses Contribution margin Amount $ 129,000 51,600 77,400 22,000 $ 55, 400 60% Fixed expenses eBook Net operating income Hint Required: Print 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 26% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 26% increase in unit sales. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 26% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).). Net operating income by % 8 Percent of Sales 100% 40% Amount $ 129,000 51,600 77,400 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income 10 points 22,000 $ 55,400 Skipped Required: eBook 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 26% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 26% increase in unit sales. Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required 3 References References Construct a new contribution format income statement for the company assuming a 26% increase in unit sales. HERRER Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 % 0 $ 0