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[The following information applies to the questions displayed below.) Saboda Company prepared the following contribution format income statement based on a sales volume of 1,000

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[The following information applies to the questions displayed below.) Saboda 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 Net operating income $ 20,000 12,000 8,000 6,000 $ 2,000 What is the break-even point in dollar sales? Break-even point Required information [The following information applies to the questions displayed below.) Saboda 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 Net operating income $ 20,000 12,000 8,000 6,800 $ 2,000 What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage Required information [The following information applies to the questions displayed below.) Saboda 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 Net operating income $ 20,000 12,000 8,000 6,000 $ 2,000 What is the degree of operating leverage? Degree of operating leverage [The following information applies to the questions displayed below.) Saboda 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 Net operating income $ 20,000 12,000 8,000 6,000 $ 2,000 Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? Increase in net operating income %

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