Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses. Contribution margin Fixed expenses Net operating income Required: Amount $ 141,000 Percent of Sales 100% 56,400 84,600 40% 60% 16,000 $ 68,600 1. What is the company's degree of operating leverage? (Round to two decimal places.) 2. Using the degree of operating leverage, estimate the percentage increase in net operating income if there is a 29% increase in unit sales. (Enter the percentage as a whole number with two decimal places, i.e., 40.25.) 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit sales.