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Please answer all the required questions. Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: begin{tabular}{lrr}

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedPlease answer all the required questions.

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: \begin{tabular}{lrr} & Amount & PercentofSales \\ Sales & $84,000 & 100% \\ Variable expenses & 33,600 & 40% \\ \cline { 2 - 3 } Contribution margin & 50,400 & 60% \\ \cline { 2 - 3 } Fixed expenses & 39,480 \\ \cline { 2 - 3 } Net operating income & $10,920 & \\ \hline \end{tabular} What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 6% 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 6% increase in unit sales. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Engberg Company } & \\ \hline Contribution Income Statement & \\ \hline & & Amount & Percent of Sales \\ \hline & & & % \\ \hline & & & % \\ \hline & & % \\ \hline & & & \\ \hline \end{tabular} Required 2 Required 3>

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