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

12,000

Contribution margin

8,000

Fixed expenses

6,000

Net operating income

$

2,000

Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales.

Iincrease in net operating income _________%

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 $6,000 and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?

Degree of operating leverage___________

Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

	Increase in Net Operating income____________%