9 1 Check my work Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 2 points eBook Hint Print References Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount Percent of Sales $ 127,000 100% 50,800 76,200 40 60% 17,000 $ 59,200 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 27% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 27% increase in unit sales