VO VII wnere you left off? C 0 Assignment L M N 0 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 Variable expenses Contribution margin Fixed exponses Not operating income $20,000 12,000 8.000 6.000 $ 2,000 Required: (Answer each question independently and always refer to the original rato unl 12. What is the degree of operating leverage? Contribution margin (a) Net operating income (b) Degree of operating leverage (a) = (b) M O . Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? Degree of operating leverage (a) Percent increase in sales (b) Percent increase in net operating income (a) (b) . B D E . N 0 4. 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 $6,000 and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Contribution margin (a) Net operating income (b) Degree of operating leverage (a) + (b) D A E M 0 5. Using the degree of operating leverage that you computed in the previous question, what is the estimated percent increase in net operating income of a 5% increase in sales? Degree of operating leverage (a) Percent increase in sales (b) Percent increase in net operating income (a) x (b)