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: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 126,000 50,400 75,600 24,000 $ 51,600 Percent of Sales 1000 408 600 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 12% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 12% 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 2 >