SCompute and Use the Degree of Operating Leverage. Engberg Company installs lawn sod in home yards The company's most recent monthly contribution format income statement is as fol- lows: Total $80,000 32,000 48.000 38,000 10,000 Sales % of Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income 100% 40% 60% Compute the company's degree of operating leverage. a. b. Using the degree of operating leverage, estimate the impact on net operating income of a 5 % in crease in sales c. Verify your estimate from part (b) above by constructing a new contribution format income state- ment for the company assuming a 5 % increase in sales. % of Sales Total Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income