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Engberg income statement follows: Company installs lawn sod in home yards. The company's most recent monthly contribution format Sales Variable expenses Amount $124,000 49,600 Percent

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Engberg income statement follows: Company installs lawn sod in home yards. The company's most recent monthly contribution format Sales Variable expenses Amount $124,000 49,600 Percent of Sales 100% 40% Contribution margin Fixed expenses 74,400 25,000 60% Net operating income 49,400 Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) gree of operating leverage 2 Using the degree of operating leverage, estimate the impact on net operating income of a 13% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).) et operating income

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