Required informationThe Foundational 15 (Algo) [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8]Skip to question

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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	$ 85,000
Variable expenses	59,500
Contribution margin	25,500
Fixed expenses	20,400
Net operating income	$ 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.)