Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Pixed expenses Net operating income Amount $ 141,000 56,400 84,600 21,000 $ 63,600 Percent of Sales 1001 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 17% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 141,000 1000 Variable expenses 56,400 400 Contribution margin 84,600 608 Fixed expenses 21.000 Net operating income $ 63,600 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 17% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in sales, Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 17% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating incomo Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 141,000 56,400 84,600 21,000 $ 63,600 Percent of Sales 1001 400 604 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 17% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 17% increase in 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 17% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 0 % $ 0