Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statemer Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount $ 84,000 Percent of Sales 100% 33,600 40 50,400 60% 39,480 $ 10,920 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales.