/ Exercise 5-9 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: 10 points Percent of Sales 100 404 60% eBook Amount $ 147,000 58,800 88,200 18,000 $ 70,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income Hint References 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 25% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 25% increase in 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 Required 2 > 2 Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 25% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income by % Required 1 Required 3 > Hint Required 1 Required 2 Required 3 brences Construct a new contribution format income statement for the company assuming a 25% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %