Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent of Sales 100% Sales Variable expenses Contribution margin Fixed expenses flet operating Income Amount $ 130,000 55,200 82,800 20,000 $ 62,000 50% 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 21% increase in sales 3. Construct a new contribution format income statement for the company assuming a 21% increase in sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the company's degree of operating leverage? Round your answer to 2 decimal Nam Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 138,000 55,200 82,800 20,000 $ 62,800 Percent of Sales 100% 40% 60% 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 21% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 21% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (le 0.1234 should be entered as 12.391) Net operating income