Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follo Percent of Amount Sales Sales $ 148,000 100% Variable expenses 59,280 404 Contribution margin 88,888 68 Fixed expenses 19.000 Net operating income $ 69,800 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 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1004 40s 604 Amount $ 148,000 59,200 88,800 19,000 $ 69,800 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 Requires 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 21% increase in sales. (Round your Intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (le 1234 should be entered as 12.34).) Net operating income by % Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 148,888 59,200 88,800 19,888 $ 69,888 Percent of Sales 1004 484 605 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. ances Required: Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 21% increase in sales, Engberg Company Contribution Income Statement Amount Percent of Sales Required 2