The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8]

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	$ 20,000
Variable expenses	13,000
Contribution margin	7,000
Fixed expenses	3,780
Net operating income	$ 3,220

Foundational 6-15 (Algo)

15. 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 $3,780 and the total fixed expenses are $13,000. 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.)