[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): $ 45,000 31,500 13,500 Sales Variable expenses Contribution margin Fixed expenses 8,640 Net operating income $ 4,860 13. 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.)

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...
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[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):
$ 45,000
31,500
13,500
Sales
Variable expenses
Contribution margin
Fixed expenses
8,640
Net operating income
$ 4,860
13. 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.)
Increase in net operating income
|%
Transcribed Image Text:Required information [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): $ 45,000 31,500 13,500 Sales Variable expenses Contribution margin Fixed expenses 8,640 Net operating income $ 4,860 13. 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.) Increase in net operating income |%
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