Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 130, 000 1008 Variable expenses 52 , 000 40 Contribution margin 78, 000 60% Fixed expenses 22, 000 Net operating income $ 565000 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 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. Complete this question by entering your answers in the tabs below. ences Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales 100 % Variable expenses 40% Contribution margin 0 60 % Fixed expenses 22,000 Net operating income $ (22,000)