2.

Serfass Corporation's contribution format income statement for July appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 468,000 234,000 234,000 53,820 $180, 180 The degree of operating leverage is closest to: Alpha Corporation reported the following data for its most recent year: sales, $520,000; variable expenses, $320,000; and fixed expenses, $150,000. The company's degree of operating leverage is closest to: Bendel Inc. has an operating leverage of 5.6. If the company's sales increase by 14%, its net operating income should increase by about