Fixed expenses are $147,000 per month. the company is currently selling 2,000 units per month. the marketing manager would like to introduce sales commissions as an incentive for the sales staff. the marketing manager has proposed a commission of $13 per unit. in exchange, the sales staff would accept a decrease in their salaries of $22,000 per month. (this is the company's savings for the entire sales staff.) the marketing manager predicts that introducing this sales incentive would increase monthly sales by 400 units. what should be the overall effect on the company's monthly net operating income of this change?

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.