ces Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount Percent of Sales $146,000 100% 58,400 40 87,600 60% 16,000 $ 71,600 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 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. 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 12% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales Sales Variable expenses Contribution margin $ 147,752 100 % 40 % 147,752 60 % Fixed expenses Net operating income $ 147,752