Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows:

Required:

What is the company's degree of operating leverage? $($Round to two decimal places.$)$

Using the degree of operating leverage, estimate the percentage increase in net operating income if there is a $16\%$ increase in unit

sales. $($Enter the percentage as a whole number with two decimal places, i$.$e$.,40\mathrm{.}25.)$

Construct a new contribution format income statement for the company assuming a $16\%$ increase in unit sales.

Complete this question by entering your answers in the tabs below.

Required $2$

Required $3$

Using the degree of operating leverage, estimate the impact on net operating income of a $16\%$ increase in unit sales. $($Round

your intermediate calculations to $2$ decimal places. Round your percentage answer to $2$ decimal places $($i$.$e $\mathrm{.}1234$ should be

entered as $12\mathrm{.}34).)$