Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 94, 000 100%% Variable expenses 37 ,600 40% Contribution margin 56, 400 60% Fixed expenses 43, 240 Net operating income $ 13, 160 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales