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 Not operating income Percent of Amount Sales $ 80,000 1000 32,000 408 48,000 600 38,000 $ 20,000 look int ht Frances 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 5% increase in unit sales 3. Construct a new contribution format Income statement for the company assuming a 5% 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 1 decimal place.) Degree of operating leverage Regul Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income stater Percent of Amount Sales Sales $ 80,000 1000 Variable expenses 32,000 409 Contribution margin 48,000 608 Fixed expenses 38,000 Net operating income $ 10,000 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 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% 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 5% increase in unit sales. (Do not round Intermediate calculations.) Net operating income by HER Now hinart 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 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% 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 5% Increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %