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Oslo Company prepared the following contribution format income statement based on a sales volume of 1 , 0 0 0 units ( the relevant range
Oslo Company prepared the following contribution format income statement based on a sales volume of units the relevant range of production is units to units:
Sales $
Variable expenses
Contribution margin
Fixed expenses
Net operating income $
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 $ and the total fixed expenses are $ Using the degree of operating leverage, what is the estimated percent increase in net operating income of a increase in unit sales?
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