Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Amount $ 86,000 Percent of Sales: 100% 34,400 40% 51,600 60% 38,700 Net operating income $12,900 Required: Fixed expenses 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 6% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 6% increase in unit sales, Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount Percent of Sales 100% 40% 0 60% 38,700 $ (38,700)