please explain

18 Engberg Company install 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 $134.000 53,600 80,400 19,000 $ 61,400 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 sales The increase in net income: The new net income: 10 pts