hapter 5-Concepts Overview and Exercises 26 ints Saved Help Save & Exit Submit Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage [LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: eBook Hint Print References Sales Variable expenses Contribution margin Fixed expenses Net operating incone Required: Amount $ 140,000 56,000 84,000 Percent of Sales 100% 40 60% 24,000 $ 60,000 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 29% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 29% 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 29% increase in unit sales. Engberg Company Contribution Income Statement Sales Variable expenses Amount Percent of Sales Contribution margin 0 0% Fixed expenses Net operating income $ Required 2 Check my work