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 income statement follows Percent Amount of Sales 132,000 100% Sales Variable expenses 52,800 40% Contribution Fixed expenses 20,000 Net operating $59,200 79,200 60% margin income Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating everage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 29% increase in sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34).) Net operating income by 3. Construct a new contribution format income statement for the company assuming a 29% increase in sales. Engberg Company Contribution Income Statement Total