IP 5. Exercise 5-9 (Algo) 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 of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 147,000 58,800 88, 200 19,000 $ 69,200 60% Book Hint Required: Ask 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 21% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in unit sales. rences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 >