Engberg Company installs lawn sod in home yards. The companys most recent monthly contribution format income statement follows:

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Amount $136,000 54,400 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses 81,600 23,000 60% Net operating income 58,600 Required 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2, using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places(i.e.1234 should be entered as 12.34).) Net operating income by 3. Construct a new contribution format income statement for the company assuming a 18% increase in sales Engberg Company Contribution Income Statement Total