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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$)$:

Question:

A$)$Assume the amounts of the company$$s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $$21,840$ and the total fixed expenses are $$52,000.$ Under this scenario and assuming total sales remain the same, what is the degree of operating leverage?

B$)$Assume the amounts of the company$$s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $$21,840$ and the total fixed expenses are $$52,000.$ Using the degree of operating leverage, what is the estimated percent increase in net operating income of a $5\%$ increase in unit sales? Note: Round your intermediate calculations and final answer to $2$ decimal places.

C$)$What is the degree of operating leverage?

D$)$Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a $5\%$ increase in unit sales?

E$)$What is the margin of safety in dollars? What is the margin of safety percentage?

F$)$How many units must be sold to achieve a target profit of $$16,800?$

G$)$What is the break$-$even point in dollar sales?

H$)$What is the break$-$even point in unit sales? Note: Round intermediate calculations to $2$ decimal places.

I$)$If the variable cost per unit increases by $$1,$ spending on advertising increases by $$1,700,$ and unit sales increase by $240$ units, what would be the net operating income? Note: Round "Per Unit" calculations to $2$ decimal places.

J$)$If the selling price increases by $$2$ per unit and the sales volume decreases by $100$ units, what would be the net operating income?Note: Round "Per Unit" calculations to $2$ decimal places.

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