Exercise 6-9 (Static) 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 $ 80,000 32,000 Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income 48,000 60% 38,000 $ 10,000 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 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in unit 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 5% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 0 % $ 0