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: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 120, 48.000 72.000 19,000 $5,000 Percent of Sales 100 401 UK 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 29% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit sales Complete this question by entering your answers in the tabs below. Required 1 Recored 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 29% Increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (1.0.1234 should be entered as 12.34).) Not operating incomo increases by 39.44% 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: Sales Variable expenses Contribution margin Fixed expenses Net operating Income Amount $ 120,000 48.000 72,000 19,000 $ 53,000 Percent of Sales 100% 40% 60% 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 29% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 29% increase in unit 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 29% increase in unit sales. Engberg Company Contribution Income Statement Amount Sales Variable expenses Contribution margin 0 Fbred expenses $ 0 Net operating income Percent of Sales % % 0 %