A company that makes organic fertilizer has supplied the following data: Bags produced and sold 200,000 Sales revenue $1,560,000 Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income $ 660,000 448,000 $ 180,000 $ 214,000 $ 58,000 The company's degree of operating leverage is closest to: Multiple Choice 12.41 3.45 1.27 26.90 Bendel Inc. has an operating leverage of 7.3. If the company's sales increase by 3%, its net operating income should increase by about: Multiple Choice 21,9% 243.3% 3.0% 7.3%