Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows:

$\backslash$table$[[,,$Percent of$],[$Sales$,$Amount,Sales$],[$Variable expenses,$94,000,1008],[$Contribution margin,$37,600,408],[$Fixed expenses,$56,400,608],[$Net operating income,$45,120,]]$

Required:

What is the company's degree of operating leverage?

Using the degree of operating leverage, estimate the impact on net operating income of a $8\%$ increase in unit sales.

Construct a new contribution format income statement for the company assuming a $8\%$ increase in unit 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 $8\%$ increase in unit sales.

Note: Round your intermediate calculations to $2$ decimal places. Round your percentage answer to $2$ decimal places $($i$.$e $.1234$ should be entered as $12\mathrm{.}34).$

Net operating income

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