Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage [LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales Variable expenses Contribution margin Fixed expenses Het operating income. Required: Amount Sales $ 134,000 53,600 100% 40 80,400 609 19,000 $61,400 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% 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? (Round your answer to 2 decimal places.) 6 Net operating income $ 61,400 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Complete this question by entering your answers in the tabs below. ook Hint Print erences 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 1.31 Required Required 2 > Net operating income Required: $ 61,400 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit 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 11% increase in unit 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).) Net operating income increases: by 14.40 Net operating income Required: $ 61,400 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 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Complete this question by entering your answers in the tabs below. nces Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount Percent of Sales % % 0 0% $ 0