Exercise 6-9 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 Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 129,000 52.600 27.400 16.000 $ 61,400 Percent of Sales 1001 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 24% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 24% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 (L06-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement Percent of Sales 1008 400 Sales Variable expenses Contribution margin Tixed expenses Net operating income Amount $ 129,000 51,600 77.400 16,000 $ 61,400 608 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 24% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 24% 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 24% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (.e 0.1234 should be entered as 12.34):). Not operating income by % 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 24% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 24% 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 assuming a 24% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % %