Required nforma [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): $ 45,000 31,500 13,500 8,640 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 4,860 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 $8,640 and the total fixed expenses are $31,500. 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[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):
Sales
$ 45,000
Variable expenses
Contribution margin
Fixed expenses
31,500
13,500
8,640
Net operating income
$ 4,860
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 $8,640 and the total fixed expenses are $31,500. Using the degree of operating leverage,
what is the estimated percent increase in net operating income
and final answer to 2 decimal places.)
a 5% increase in unit sales? (Round your intermediate calculations
Increase in net operating income
Transcribed Image Text:Required information [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): Sales $ 45,000 Variable expenses Contribution margin Fixed expenses 31,500 13,500 8,640 Net operating income $ 4,860 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 $8,640 and the total fixed expenses are $31,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income and final answer to 2 decimal places.) a 5% increase in unit sales? (Round your intermediate calculations Increase in net operating income
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