Amount $ 94,000 37,600 56,400 Fixed expenses 44,180 Net operating income $ 12,220 Sales Variable expenses Contribution margin Required: 1. What is the company's degree of operating leverage? Percent of Sales 100% 40% 60% 2. Using the degree of operating leverage, estimate the impact on net operating income of a 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Engberg Company Contribution Income Statement Amount $ 0 O Percent of Sales % % 0%

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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales