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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 $ 145,000 58,000 87,000 16,000 $ 71,000 Percent of Sales 1008 40 608 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 22% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 22% increase in unit sales Complete this question by entering your answers in the tabl below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places) Degree of operating leverage Required 2 > 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 22% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 22% increase in unit 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 22% Increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12,34).) Net operating income by 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 22% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % %

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