Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage (L05-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 4x Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 126,000 50,400 75,600 22,000 $ 53,600 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 14% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 14% increase in unit sales Complete this question by entering your answers in the tabs below 5. LUISUULL drew LUULUUT TULLUT STIIL TUI LE LUI SU ait oli de lui dies 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 14% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales Variable expenses Contribution margin 0 0 % Fbed expenses 22,000 Net operating income $ (22.000)