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 $ 130,000 52,000 78,000 22,000 $ 56,000 Percent of Salon 1000 400 605 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 28% Increase in sales. 3. Construct a new contribution format income statement for the company assuming a 28% increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Hanulod Required 2 > hout Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 28% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (1 0.1234 should be entered as 12.34).) Net operating income 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 28% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales Rese