Exercise 5-9 Compute and Use the Degree of Operating Leverage [L O5-8) Engber rg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows cen Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $130,000 52,000 78,000 23,000 55,000 100% 40% 60% 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 24% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 24% increase in sales