Chapter 6, Problem 15F15

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):

Required:

(Answer each question independently and always refer to the original data unless instructed otherwise.)

Using the degree of operating leverage that you computed in the previous question, what is the estimated percent increase in net operating income of a 5% increase in sales?