Accounting 2 Multiple Choice

Carver Packing Company reports total contribution margin of $61.250 and pretax net income of $24.500 for the current month. In the next month, the company expects sales volume to increase by 10%. The degree of operating leverage and the expected percent change in income, respectively, are O 2.5 and 10% O 0.40 and 2.3% O 0.40 and 10% 5.0 and 50% O 2.5 and 25%