12. What is the degree of operating leverage?

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

Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, L05-7, LO5-8] 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income 10,000 5,500 4,500 2,250 2,250