Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses Fixed expenses $ 138,000 100% 55,200 40% Contribution margin 82,800 60% 17,000 Net operating income $ 65,800 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 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage < Required 1 Required 2 >