Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent Amount of Sales Sales Variable 100% 88,000 35,200 40% expenses Contribution margin 52,800 60% Fixed expenses 41,360 Net operating income 11,440 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage