Exercise 2-9 (Algo) Compute and Use the Degree of Operating Leverage [LO2-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income stat Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Percent of Amount Sales $ 98,000 39,200 58,800 100% 40 60% 46,060 $ 12,740 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 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit 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? Note: Round your answer to 2 decimal places. Degree of operating leverage Required 1 Required 2