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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100 408 Amount Sales

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100 408 Amount Sales Variable expenses $149,000 59,600 Contribution margin 608 89, 400 Fixed expenses 23,000 66,400 Net operating income 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 29% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 29% increase in sales

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