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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000.

6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

12. What is the degree of operating leverage?