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 100% 40 60% Amount $ 121,880 48,480 72,689 25,000 $ 47,680 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 10% Increase in unit sales. 3. Construct a new contribution format Income statement for the company assuming a 10% 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.) Degree of operating leverage Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 10% 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 by %% Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 10% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales 96 96