10 Check my work Exercise 6-9 Compute and Use the Degree of Operating Leverage (L06-8) Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: ok Sales Variable expenses Contribution margin Pixed expenses Net operating income Amount $ 80,000 32,000 48,000 38,000 $ 10,000 Percent of Sales 1000 401 608 nces 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 5% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in sales. Complete this question by entering your answers in the tabs below