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

Amount Percent of Sales Sales $ 125,000 100% Variable expenses 50,000 40 Contribution margin 75,000 60% Fixed expenses 18,000 Net operating income $ 57,000

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 19% increase in unit sales.

3. Construct a new contribution format income statement for the company assuming a 19% increase in unit sales.

Required 1 | Required2 H Required3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Required 2 > Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 19% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (Le .1234 should be entered as 12.34).) Required 1 Required 3 > increases decreases | Requiredl H Required2 | RequiredS | Construct a new contribution format income statement for the company assuming a 19% increase in unit sales.