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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

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 $ 60,000 Variable expenses 39,000 Contribution margin 21,000 Fixed expenses 14,700 Net operating income $ 6,300 10. How many units must be sold to achieve a target profit of $12,600? 11. What is the margin of safety in dollars? What is the margin of safety in percentage? 12. What is the degree of operating leverage? 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? 14. Assume the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $14,700 and the total fixed expenses are $39,000. Under this scenario and assuming total sales remain the same, what is the degree of operating leverage? 15. Assume the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $14,700 and the total fixed expenses are $39,000. 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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