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 $ 24,200

Variable expenses 13,400

Contribution margin 10,800

Fixed expenses 7,668

Net operating income $ 3,132

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 $7,668 and the total fixed expenses are $13,400. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Degree of operating leverage_____?

2. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $7,668 and the total fixed expenses are $13,400. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 3% 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). Increase in net operating income_________%?