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Required information [The following information applies to the questions displayed below] Oslo Company prepared the following contribution format income statement based on a sales
Required information [The following information applies to the questions displayed below] 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 Operating income $20,000 12,000 8,000 6,000 $2,000 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 $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 operating income of a 5% increase in sales? ncrease in operating income
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