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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 1,000 units (the relevant range of production is 500 units to 1,500 units):
Sales $ 105,000
Variable expenses 73,500
Contribution margin 31,500
Fixed expenses 27,720
Net operating income $ 3,780
15. 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 $27,720 and the total fixed expenses are $73,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales?

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