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% Amount Sales Variable expenses Contribution margin Fixed expenses Net operating income 120,000 48,000 72,000 18,000 $ 54,000 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 27% increase in sales 3. Construct a new contribution format income statement for the company assuming a 27% increase in sales