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please explain how it's done with working Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the
please explain how it's done with working
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 Variable expenses Contribution margin Fixed expenses Net operating income $ 85,000 59,500 25,500 20,400 $ 5,100 Foundational 5-12 (Algo) 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 85,000 59,500 25,500 20,400 $ 5,100 Foundational 5-13 (Algo) 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 85,000 59,500 25,500 20,400 $ 5,100 Foundational 5-14 (Algo) 14. 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 $20,400 and the total fixed expenses are $59,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 85,000 59,500 25,500 20,400 $ 5,100 Foundational 5-15 (Algo) 15. 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 $20,400 and the total fixed expenses are $59,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)Step by Step Solution
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