Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Bales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 147,000 58,400 88,200 23,000 $ 65,200 1005 408 604 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 25% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 25% increase in unit sales. 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 Required 3 Using the degree of operating leverage, estimate the impact on net operating Income of a 25% increase in unit sales. (Round your Intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Not operating income Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 25% Increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %