Carver Packing Company reports total contribution margin of $84,400 and pretax net income of $21,100 for the current month. In the next month, the company expects sales volume to increase by 6%. The degree of operating leverage and the expected percent change in income, respectively, are:

Multiple Choice

• 4.0 and 6%

• 3.0 and 18%

• 4.0 and 24%

• 0.25 and 6%

• 0.25 and 3.6%