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 $ 124,000 Percent of Sales 100% 49,600 40% 74,400 60% 21,000 $ 53,400 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 24% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 24% increase in unit sales.