Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 144,000 57,600 86,400 17,000 $ 69,400 Percent of Sales 1008 408 608 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 23% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 23% increase in sales. 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 Prev 7 of 10 Next >