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 Variable expenses Contribution margin: Fixed expenses Net operating incone $ 80,000 52,000 28,000 21,848 $ 6,160

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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[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
Variable expenses
Contribution margin:
Fixed expenses
Net operating income:
$ 80,000
52,000
28,000
21,848
$ 6,160
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 $21,840 and the total fixed expenses are $52,000. 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
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 Variable expenses Contribution margin: Fixed expenses Net operating income: $ 80,000 52,000 28,000 21,848 $ 6,160 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 $21,840 and the total fixed expenses are $52,000. 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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