Question
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 $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 F 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 $30,100 and the total fixed expenses are $65,000. Under this scenario and assuming total sales remain the same, what is the degree of operating leverage? Note: Round your answer to 2 decimal places.
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