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

$\backslash$table$[[,$Amount,$\backslash$table$[[$Percent of$],[$Sales$]]],[$Sales$,$$$94,000,1008],[$Variable expenses,$37,600,40$ :$],[$Contribution margin,$56,400,60$ :$],[$Fixed expenses,$42,300,],[$Net operating income,$$14,100,]]$

Required:

What is the company's degree of operating leverage?

Using the degree of operating leverage, estimate the impact on net operating income of a $5\%$ increase in unit sales.

Construct a new contribution format income statement for the company assuming a $5\%$ increase in unit sales.

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Required $1$

What is the company's degree of operating leverage? $($Round your answer to $2$ decimal places.$)$