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 $ 96,000 Percent of Sales 100% 38,400 40% 57,600 60% 45,120 $ 12,480 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 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% 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 5% 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 increases by % Construct a new contribution format income statement for the company assuming Sales Variable expenses Contribution margin Fixed expenses Net operating income Engberg Company Contribution Income Statement Amount Percent of Sales 100% 40% 0 60% 45,120 $ (45,120)