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	$ 10,000
Variable expenses	5,500
Contribution margin	4,500
Fixed expenses	2,250
Net operating income	$ 2,250

1. What is the variable expense ratio?

2. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

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

4. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

5. If the variable cost per unit increases by $1, spending on advertising increases by $1,000, and unit sales increase by 100 units, what would be the net operating income?

6. What is the break-even point in unit sales?

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

8. How many units must be sold to achieve a target profit of $2,700?

9. What is the margin of safety in dollars? What is the margin of safety percentage?

10. What is the degree of operating leverage? (Round your answer to 2 decimal places.)

11. 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.)

12. 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 $2,250 and the total fixed expenses are $5,500. 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.)

13. 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 $2,250 and the total fixed expenses are $5,500. 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.)