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5. Compute and Use the Degree of Operating Leverage. Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement is as follows: % of Sales 100% 40% 60 Total Sales $80,000 Variable xpenses 32,000 Contribution Margin 48,000 Fixed Expenses 38,000 Nel Operating Income 10,000 Compute the company's degree of operating leverage b. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. c. Verify your estimate from part (b) above by constructing a new contribution format income statement for the company assuming a 5% increase in sales. Total % of Sales Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income