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14. Assume that the amounts of the company's total variable expenses and total food expenses were reversed. In other words, sume that the total variable

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14. Assume that the amounts of the company's total variable expenses and total food expenses were reversed. In other words, sume that the total variable expenses are 37.788 and the total fixed expenses are $13,900. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 4.64 Required Information The following information applies to the questions displayed below References Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units the relevant range of production is 500 units to 1.500 units); Worksheet Leaming Objective: 03-03 Usi contribution margin ratio (CM compute changes in contributi margin and net operating inco resulting from changes in sale volume Sales $25.700 13.900 1800 7788 Difficulty: 2 Medium Leaming Objective: 03-04 She effects on net operating incon changes in variable costs, fixe selling price and volume Variable expenses Contribution margin Fixed expenses Net operating income $ 4,012

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