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: Variable expenses Contribution margin Fixed expenses Net operating income. $ 50,000 27,500 22,500 14,850 $ 7,650 Foundational 6-3 (Algo) 3. What is the variable expense ratio? Variable expense ratio % [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volu relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin $ 50,000 27,500 22,500 14,850 Net operating income $ 7,650 Fixed expenses Foundational 6-4 (Algo) 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answes Increase in net operating income 5. If sales decline to 900 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.) Net operating income ces 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? (Round "Per Unit" calculations to 2 decimal places.) Net operating income ces 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,400, and unit sales increase by 180 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.) Not operating income References 8. What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.) Break-even point units References 9. What is the break-even point in dollar sales? Break-even point ferences 10. How many units must be sold to achieve a target profit of $13,500? (Round intermediate calculations to 2 decimal places.) Number of units nces 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage % References 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage es 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in nel operating income % ences 14. 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 $14,850 and the total fixed expenses are $27,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 15. 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 $14,850 and the total fixed expenses are $27,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income %