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Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 123,000 49,200 73,800 23,000 $ 50,800 Percent of Sales 100% 40% 60% 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 18% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 18% increase in unit sales. 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 1.40 Required 2 > Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 18% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 % 0 $ 0