Oslo Company prepared the following contribution format incomestatement based on a sales volume of 1,000 units (the relevantrange of production is 500 units to 1,500 units):

Sales	$	80,000
Variable expenses		52,000
Contribution margin		28,000
Fixed expenses		21,840
Net operating income	$	6,160

11. What is the margin of safety in dollars? What is the marginof safety percentage?

12. What is the degree of operating leverage? (Roundyour answer to 2 decimal places.)

13. Using the degree of operating leverage, what is theestimated percent increase in net operating income of a 5% increasein sales? (Round your intermediate calculations and finalanswer to 2 decimal places.)

14. Assume that the amounts of the company’s total variableexpenses and total fixed expenses were reversed. In other words,assume that the total variable expenses are $21,840 and the totalfixed expenses are $52,000. Under this scenario and assuming thattotal sales remain the same, what is the degree of operatingleverage? (Round your answer to 2 decimalplaces.)

15. Assume that the amounts of the company’s total variableexpenses and total fixed expenses were reversed. In other words,assume that the total variable expenses are $21,840 and the totalfixed expenses are $52,000. Given this scenario and assuming thattotal sales remain the same. Using the degree of calculatedoperating leverage, what is the estimated percent increase in netoperating income of a 5% increase in sales? (Round yourintermediate calculations and final answer to 2 decimalplaces.)