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 81,000 609 Fixed expenses 21,000 Net operating income: $60,000 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 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 10 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Amount $ 135,000 Percent of Sales 100% 54,000 40% Contribution margin 81,000 60% Fixed expenses 21,000 Net operating income $60,000 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 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% 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 12% Increase in unit 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 by % Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Percent of Amount Sales $ 135,000 100% 54,000 40% Contribution margin 81,000 60% 21,000 Variable expenses Fixed expenses Net operating income i $60,000 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 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit 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 12% Increase in unit sales, Engberg Company Contribution Income Statement Amount Percent of Sales Required 2 % %