3) What is the degree of operating leverage?

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

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 $ 25,000 17,500 7,500 4,200 $ 3,300