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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent Amount of Sales Sales $140,000

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent Amount of Sales Sales $140,000 100% Variable expenses 56,000 40% Contribution margin 84,000 60% Fixed expenses 19,000 Net operating income $ 65,000 Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 29% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34).) Net operating income by %

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