Suburban Landscape provides landscaping design and installation for residential and commercial properties. The company's recent annual contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $132,000 Percent of Sales 100% 52,800 40% 79,200 60% 16,000 $ 63,200 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.