company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Percent Amount of Sales Sales $ 137,000 100% Variable expenses 54.800 40% Contribution margin 60% Fixed expenses 20,000 Net operating income $ 62,200 82,200 Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 1.32 2. Using the degree of operating leverage estimate the impact on net operating income of a 26% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (ie 1234 should be Net operating income increases by 34.32 % 3. Construct a new contribution format income statement for the company assuming a 26% increase in sales Engberg Company Contribution Income Statement Total Sales Variable expenses Contribution margin 0 Fixed expenses Net operating income