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 $ 25,000

Variable expenses 17,500

Contribution margin 7,500

Fixed expenses 4,200

Net operating income $ 3,300

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

Increase in net operating income $________

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

Net Operating Income $__________

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

Net Operating Income $____________

7. If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income?

Net Operating Income $____________

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

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

7. How many units must be sold to achieve a target profit of $4,500?

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

9. What is the degree of operating leverage?

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

Degree of operating leverage _________

13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)

Increase in net operating Income__________%