Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant

business accounting

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Answer 1

Answer #1

Degree of operating leverage = Contribution margin/Operating income

= 8,800/1,848

= 4.76

Increase in operating income

= Degree of operating leverage * Increase in sales

= 19.04%

Note that I have rounded some numbers. Comment if you face any issues

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Answer 2

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