Engberg Company installs lawn socl in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales 5 125,000 100% Variable expenses 50,000 40 Contribution margin $5,000 50% Fixed expenses 16,000 Net operating income 5 59,000 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit sales