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

Required:

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

Percent increase in net operating income

%