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	$	23,600
Variable expenses		13,200
Contribution margin		10,400
Fixed expenses		7,592
Net operating income	$	2,808

1. What is the contribution margin ratio?

2.

What is the variable expense ratio?

3.

If sales increase to 1,001 units, what would be the increase in net operating income?

4.

If sales decline to 900 units, what would be the net operating income?

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

6.How many units must be sold to achieve a target profit of $6,604?

7.What is the margin of safety in dollars?

8. What is the margin of safety percentage?

9.What is the degree of operating leverage

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

11.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 $7,592 and the total fixed expenses are $13,200. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?

12.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 $7,592 and the total fixed expenses are $13,200. 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 5% increase in sales?