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: Amount $128,000 51,200 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses 76,800 18,000 60% Net operating income 58,800 Required 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2, using the degree of operating leverage, estimate the impact on net operating income of a 15% increase in 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