Engberg Company installs town 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 $ 137,000 54,800 82,200 21,000 $ 61,200 Percent or Sales 100% 40% BOX Required: 1. Who is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% 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 Romuld Required 2 > Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount $ 137,000 54,800 82,200 21,000 $ 61,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income Percent or Sales 100% 40% sex 55 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 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% 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 23% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (.e 0.1234 should be entered as 12.34).) Net operating income by 60% Contribution margin Fixed expenses Net operating income 82,200 21,000 $ 61,200 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 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% 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 23% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales 96 96 96