Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Sales Variable expenses $ Percent of Sales 100% 40% Amount 80,000 32,000 60% Contribution margin Fixed expenses 48,000 38,000 Net operating income $ 10,000 Required: 1. Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (Do not round intermediate calculations.) Net operating income by %