Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement

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Engberg Company installs lawn sod in home yards. The company’s
most recent monthly contribution format income statement follows:
Amount Percent of Sales Sales $ 133,000 100% Variable expenses
53,200 40 Contribution margin 79,800 60% Fixed expenses 20,000 Net
operating income $ 59,800 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 15% increase in
unit sales. 3. Construct a new contribution format income statement
for the company assuming a 15% increase in unit sales.