Please complete Required 2 & 3

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 140,000 56,000 84,000 16,000 $ 68,000 Percent of Sales 100 404 600 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 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% Increase in sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. (Do not round intermediate calculations, Round your percentage answer to 2 decimal places (1, 0.1234 should be entered as 12.34).) Net Operating income increases by Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1000 401 600 Amount $ 140,000 56,000 84,000 16,000 $ 68,000 Sales Variable expenses Contribution margin Pixed 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 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% increase in 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 23% Increase in sales. Percent of Sales Engborg Company Contribution Income Statement Amount Sales Variable expenses Contribution margin Faced expenses Net operating income 50 % %