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Carver Packing Company reports total contribution margin of $64,000 and pretax net income of $25,600 for the current month. In the next month the company
Carver Packing Company reports total contribution margin of $64,000 and pretax net income of $25,600 for the current month. In the next month the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:
2.5 and 20%
2.5 and 8%
0.40 and 2.3%
0.40 and 8%
4.0 and 32%
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