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 Anunt $ 143,000 57,200 8 5,800 19,000 $ 66,800 Percent of Sales 1001 408 603 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 16% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 16% Increase in sales. ances 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 > 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 $ 143,000 57,200 85,800 19,000 $ 66,800 Percent of Sales 1000 401 600 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 16% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 16% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in sales. (Do not round Intermediate calculations. Round your percentage answer to 2 decimal places (1.e 0.1234 should be entered as 12.34).) Net operating income 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 statem Sales Variable expenses Contribution margin Fixed expenses Net operating Income Amount 103,000 57,200 85,800 19,000 66,000 Percent of sales 1000 400 608 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 16% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 16% Increase in sales Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company ass Engberg Company Contribution Income Statement Amount Percent of Sales Required