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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

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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 incone Required: Amount Percent of Sales $ 94,000 100% 37,600 40 56,400 60% 43,240 $ 13,160 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 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% Increase in unit sales. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 What is the company's degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverage

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