Homework answers / question archive / 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$22,700Variable expenses 12,900Contribution margin 9,800Fixed expenses 8,232Net operating income$1,568   Required: Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Do not round intermediate calculations

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$22,700Variable expenses 12,900Contribution margin 9,800Fixed expenses 8,232Net operating income$1,568   Required: Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Do not round intermediate calculations

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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$22,700Variable expenses 12,900Contribution margin 9,800Fixed expenses 8,232Net operating income$1,568

Required:

Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)