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In: AccountingExercise 5-9 Compute and Use the Degree of Operating Leverage[LO5-8] Engberg Company installs lawn sod...Exercise 5-9 Compute and Use the Degree of Operating Leverage[LO5-8] Engberg Company installs lawn sod in home yards.The company’s most recent monthly contribution format incomestatement follows: Amount Percent of Sales Sales $ 149,000 100%Variable expenses 59,600 40% Contribution margin 89,400 60% Fixedexpenses 24,000 Net operating income $ 65,400 Required:1. Compute the company’s degree of operating leverage. (Roundyour answer to 2 decimal places.)2. Using the degree of operating leverage, estimate the impacton net operating income of a 19% increase in sales. (Round yourintermediate calculations to 2 decimal places. Round yourpercentage answer to 2 decimal places (i.e .1234 should be enteredas 12.34).)3. Construct a new contribution format income statement for thecompany assuming a 19% increase in sales.