Exercise 6-9 (Algo) Compute and Use the Degree of Operating Leverage (L06-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows: Sales Percent of Amount Sales $ 120,000 1001 Variable expense 48.000 400 Contribution margin 72.000 608 Tixed expenses 23,000 Not operating Income 49,000 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 23% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 23% increase in unit sales. 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 23% Increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 23% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 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 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating feverage, estimate the impact on net operating income of a 23% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (1.e.1234 should be jentered 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 23% Increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % %