Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount Sales $ 125,000 100% 0,000 40 75,000 601 18,000 $ 57,000. 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 13% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 13% increase in unit sales. Answer is not complete. 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 1.44 Sales Variable expenses. Contribution margin Fixed expenses Net operating income Required: Amount $ 125,000 Percent of Sales 100% 50,000 40 75,000 60 18,000 $ 57,000 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 13% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 13% increase in unit sales. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 21 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 13% 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 % Answer is not complete. 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 13% increase in unit sales. Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Fixed expenses Net operating income Percent of Amount Sales % % 0 0 % 0