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	$	55,000
Variable expenses		33,000
Contribution margin		22,000
Fixed expenses		14,960
Net operating income	$	7,040

1-1. What is the break-even point in unit sales?

1-2. What is the break-even point in dollar sales?

1-3. How many units must be sold to achieve a target profit of $13,200?

2-1. What is the margin of safety in dollars? What is the margin of safety percentage?

Margin of safety in dollars
Margin of safety percentage		%

2-2. What is the degree of operating leverage?

2-3. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

3-1. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,960 and the total fixed expenses are $33,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?

3-2. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,960 and the total fixed expenses are $33,000. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?