kEngberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40 60 % Sales Variable expenses Contribution margin Fixed expenses Net operating income 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. Required 1 Amount $ 86,000 34,400 Complete this question by entering your answers in the tabs below. Required 2 Required 3 51,600 40,420 $ 11,180 Degree of operating leverage What is the company's degree of operating leverage? (Round your answer to 2 decimal places.)

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. What is the company's degree of operating leveroge? (Round your answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34).) Construct a new contribution format income statement for the company assuming a 5% increase in unit sales