Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 98,000 39,200 58,800 45,080 $ 13,720 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% 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: 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Complete this question by entering your answers in the tabs below. What is the company's degree of cperating leverage? (Round your answer to 2 decimal places:) Engberg Company installs lawn sod in home yards. The campanys most recent monthly contribution format income statement follows: 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 7 cincrease in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7 \% increase in unit sales Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, estimate the impact on net operating income of a 7 w increase in unit sales, (kound your iaterinediate calculations to 2 decmal places. Rownd your bercentage answer to 2 decinal place lie 1234 thould be entered as 12347 . Using the degree of operating leverage, estimate the impact on net operating income of a 7% increase in unit sales. Construct a new contribution format income statement for the company assuming a 7% 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 7% increase in unit sales