Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $135,000 Sales 100% 54,000 40% 81,000 60% 18,000 $ 63,000 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 28% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 28% increase in 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 28% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales 0% Help Save & Exit Submit