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 19,000 $ 59,600 Percent of Sales 100% 40% 60% 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 26% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 26% increase in sales