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 $ 20,000

Variable expenses 13,000

Contribution margin 7,000

Fixed expenses 3,780

Net operating income $ 3,220

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 $3,780 and the total fixed expenses are $13,000