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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income simement follow Sales Variable expenses Contribution margin Fixed expenses

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income simement follow Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 129,000 51.000 77,400 10,000 $ 61,400 Percent of Sales 100% 40% BOX Required: 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 10% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 10% increase in unit sales Complete this question by entering your answers in the tabs below Required 1 Required 2 Required What is the company's degree of operating leverage? (Round your answer to 2 decimal place)

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