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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 volume
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 Met 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. Using the degree of operating leverage what is the estimated percent increase in net operating income of a 5% increase in unit sales? Increase not operating income %
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