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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

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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 Amount $ 122,000 48,800 73,200 18,000 $ 55,200 Percent of Sales 100% 40 60 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 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Door of operating sverage figureda >

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