Percent of Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount $ 132,000 Sales 100% 52,800 40 79,200 60% 17,000 $ 62,200 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 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. Answer is complete but not entirely correct. 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 12% increase in unit sales. Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Fixed expenses Net operating income Percent of Amount Sales $ 158,400 100% 63,360 40% 95,040 60 % 17,000 $ 78,040