Lofft Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (2,000 units)$120,000 Variable expenses 90,000 Contribution margin 30,000 Fixed expenses 16,500 Net operating income$13,500

Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 10% increase in sales is closest to?

4.50%

88.89%

1.13%

22.22%