Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent of Amount Sales Contribution margin Sales Variable expenses Fixed expenses Net operating income $ 128,000 100% 51,200 40% 76,800 60% 17,000 $ 59,800 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 18% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 18% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 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. Percent of Amount Sales $ 128,000 100% 51,200 40% 76,800 60% 17,000 $ 59,800 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 18% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 18% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in unit 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 % Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount Sales $ 128,000 100% 51,200 40% 76,800 60% 17,000 $ 59,800 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 18% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 18% 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 18% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 0% $ 0