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What is estimated percent increase in net operating income

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Reference no: EM132842526

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 $22,700

Variable expenses 12,900

Contribution margin 9,800

Fixed expenses 8,232

Net operating income $1,568

Required:

Problem 1: Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132842526

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