Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Amount $146,000 58,400 Sales Variable expenses 60% Contribution margin 87,600 Fixed expenses 23,000 $ 64,600 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. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 1 Required 2