[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	$	23,000
Variable expenses		13,000
Contribution margin		10,000
Fixed expenses		8,500
Net operating income	$	1,500

1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)

Contribution margin per unit ______.

2. What is the contribution margin ratio? (Enter your answer as a percentage rounded to 2 decimal places (i.e., 0.13579 should be entered as 13.58).)

Contribution margin ratio _____%

3. What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

Variable expense ratio _____%

4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

Increase in net operating income _____.

5. If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.)

Net operating income _____.

8. What is the break-even point in unit sales? (Do not round intermediate calculations.)

Break-even point _____ units.

9. What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)

Break-even point _____.

12. What is the degree of operating leverage? (Round your answer to 2 decimal places.)

Degree of operating leverage _____.

13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 4% 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).

Increase in net operating income _____%

14. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $8,500 and the total fixed expenses are $13,000. 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.)

Degree of operating leverage _____.

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 $8,500 and the total fixed expenses are $13,000. 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 net operating income of a 4% 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).

Increase in net operating income _____%