! Required information. The Foundational 15 (Algo) [LO6-1, LO6-3, LOG-4, LOG-5, LOG-6, LO6-7, LO6-8) [The following information applies to the questions displayed below.] 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): Bales Variable expenses Contribution margin Tixed expenses Not operating income $25,000 17,500 7,500 4.200 $3,300 Foundational 6-15 (Algo) 15. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income %
! Required information. The Foundational 15 (Algo) [LO6-1, LO6-3, LOG-4, LOG-5, LOG-6, LO6-7, LO6-8) [The following information applies to the questions displayed below.] 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): Bales Variable expenses Contribution margin Tixed expenses Not operating income $25,000 17,500 7,500 4.200 $3,300 Foundational 6-15 (Algo) 15. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
![!
Required information.
The Foundational 15 (Algo) [LO6-1, LO6-3, LOG-4, LOG-5, LOG-6, LO6-7, LO6-8)
[The following information applies to the questions displayed below.]
Osio 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
Variable expenses
Contribution margin
Tixed expenses
Not operating income
$25,000
17,500
7,500
4.200
$3,300
Foundational 6-15 (Algo)
15. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Using the degree of operating leverage,
what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations
and final answer to 2 decimal places.)
increase in net operating income
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0534ec32-ff57-4419-b82b-a555869fd98a%2Fe9d34265-6e86-4eee-a48c-b1fd28ddb430%2Froib9sc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information.
The Foundational 15 (Algo) [LO6-1, LO6-3, LOG-4, LOG-5, LOG-6, LO6-7, LO6-8)
[The following information applies to the questions displayed below.]
Osio 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
Variable expenses
Contribution margin
Tixed expenses
Not operating income
$25,000
17,500
7,500
4.200
$3,300
Foundational 6-15 (Algo)
15. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Using the degree of operating leverage,
what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations
and final answer to 2 decimal places.)
increase in net operating income
%
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