Exercise 6-9 Compute and Use the Degree of Operating Leverage [LO6-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40t Amount Sales Variable expenses Contribution margin Pixed expenses Net operating income 133,000 53,200 79, 800 23,000 S 56,800 60% Required: 1. What is the company's degree of operating leverage? 2. using the degree of operating leverage, estimate the impact on net oper ting income of a 25% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 25% increase in sales