How do determine what is the degree of operating leverage

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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):

Sales                         $22,700

Variable expenses        12,900

Contribution margin      9,800

Fixed expenses             8,232

Net operating income      $1,568

Required:

Problem 1: What is the degree of operating leverage? (Round your answer to 2 decimal places.)

Reference no: EM132714539

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