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	$	22,100
Variable expenses		12,700
Contribution margin		9,400
Fixed expenses		7,708
Net operating income	$	1,692

1. What is the degree of operating leverage?

2. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).