Question
[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
[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 | $ | 22,700 | ||
Variable expenses | 12,900 | |||
Contribution margin | 9,800 | |||
Fixed expenses | 8,232 | |||
Net operating income | $ | 1,568 | ||
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13 . | Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).
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