Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income. 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 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Amount $ 92,000 36,800 55,200 43,240 $ 11,960 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 2 decimal places.) Degree of operating leverage Required 1 Required 2 >

1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impoct on net operating income of a 8% increase in unit saies: 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Complete this question by entering your answers in the tabs beiow. What is the company's degree of operating leverage? (Round your answer to 2 decimal plocisi)