Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 98,000 Percent of Sales Sales Variable expenses Fixed expenses 100% 39,200 40% Contribution margin 58,800 60% 44,100 Net operating income $ 14,700 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %