Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 13. Using the degree of Operating leverage, what is the estimated percent ncrease in net operating income that would result from a 5% increase in unit sales? Note: Round your Intermediate calculations and final answer to 2 decimal places.
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 13. Using the degree of Operating leverage, what is the estimated percent ncrease in net operating income that would result from a 5% increase in unit sales? Note: Round your Intermediate calculations and final answer to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Oslo Company prepared the following
contribution format income statement based on a
sales volume of 1,000 units (the relevant range of
production is 500 units to 1,500 units): Sales $
100,000 Variable expenses 65,000 Contribution
margin 35,000 Fixed expenses 30,100 Net
operating income $ 4,900 13. Using the degree of
operating leverage, what is the estimated percent
increase in net operating income that would result
from a 5% increase in unit sales? Note: Round your
intermediate calculations and final answer to 2
decimal places.
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