Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 138,000 55,200 82,800 18,000 $ 64,800 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 21% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 21% increase in sales. Answer is complete but not entirely correct. 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 21% increase in sales. Engberg Company Contribution Income Statement Amount Sales on > 3 Percent of Sales 100% 40% 60 % Variable expenses Contribution margin Fixed expenses Net operating income 155,940 62,376 93,564 21,000 $ 72,564 lo