Eneliko Company installs home theater systems. The companys most recent monthly contribution format income statement appears below:

		Amount	Percent of Sales
Sales	$	120,000	100%
Variable expenses		84,000	70%
Contribution margin		36,000	30%
Fixed expenses		24,000
Net operating income	$	12,000
Compute the companys degree of operating leverage Using the degree of operating leverage, estimate the impact on net operating income of a 10% increase in sales. Complete the new contribution format income statement for the company assuming a 10% increase in sales.