Amount Sales Sales Variable expenses Contribution margin $ 123,000 100% 49,200 40% 73,800 60% Fixed expenses 25,000 Net operating income $ 48,800 Required: Help Save & Exit 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. 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 2