Sales Variable expenses Contribution margin Fixed expenses $125,000 Amount Percent of Sales 100% 50,000 40 75,000 60% 18,000 Net operating income $ 57,000 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 13% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 13% 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 13% increase in unit sales. Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Fixed expenses Amount Percent of Sales 100 % 141,250 50,000 40 % 91,250 60 % 18,000 $ 73,250 < Required 2