Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses $135,000 100% 54,000 40% Contribution margin 81,000 60% Fixed expenses 19,000 Net operating income $ 62,000 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 10% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 10% 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 1 Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses $135,000 54,000 100% 40% Contribution margin 81,000 60% Fixed expenses 19,000 Net operating income $ 62,000 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 10% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 10% 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 10% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).) Net operating income increases by < Required 1 Required 3> Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses $135,000 100% 54,000 40% Contribution margin 81,000 60% Fixed expenses 19,000 $ 62,000 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 10% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 10% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 10% increase in sales. Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Amount Percent of Sales % % 0 0% Fixed expenses Net operating income $ 0