Engberg Company Installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 131,000 52,400 78,600 20,000 $ 58,600 Percent of Sales 1000 400 600 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 14% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 14% 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 14% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 0 % $ 0 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 616,000 431,200 184,800 150,000 $ 34,800 Per Unit $40 28 $ 12 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $70,800? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $67,000 per no change in fixed expenses, by how much would you expect monthly net operating income to increase? there is Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B Reg 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit 0$ 0