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: Amount $ 140,000 56,000 Percent of Sales 100% 40% 60% Sales Variable expenses Contribution margin Fixed expenses Net operating income 84,000 17,000 $ 67,000 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 sales. 3. Construct a new contribution format income statement for the company assuming a 23% increase in sales. Complete this question by entering your answers in the tabs below