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 Amount $ 96,000 38,400 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. Required 1 57,600 43,200 $ 14,400 Complete this question by entering your answers in the tabs below. 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

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: 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. Complete this question by entering your answers in the tabs below. What is the company's degree of operating leverage? Note: Round your answer to 2 decimal places