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 $ 128,000 51,200 76,800 18,000 $ 58,800 1. What is the company's degree of operating leverage? Percent of Sales 100% 40 60% 2. Using the degree of operating leverage, estimate the impact on net operating income of a 20% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 20% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales Variable expenses Contribution margin $ 153,600 120% 61,440 40% 92,160 80% Fixed expenses 18,000 Net operating income $ 74,160