Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1004 401 608 Amount $ 127,000 50.800 76,200 23,000 $ 53,200 Sales Variable expenses Contribution margin Fixed expenses Het 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 22% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 22% increase in sales