Carver Packing Company reports total contribution margin of $80,000 and pretax net income of $40,000 for the current month. In the next month, the company expects sales volume to increase by 9%. The degree of operating leverage and the expected percent change in income, respectively, are:

Multiple Choice

• 0.50 and 1.8%

• 2.0 and 18%

• 2.0 and 9%

• 0.50 and 9%

• 4.5 and 41%