Q $1.$ Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $$1\mathrm{.}49$ and the average variable expense per cup is $$0\mathrm{.}36.$ The average fixed expense per month is $$1,300.$ An average of $2,100$ cups are sold each month. What is the operating leverage?

a$.2\mathrm{.}21$

b$.0\mathrm{.}45$

c$.0\mathrm{.}34$

d$.2\mathrm{.}92$

Question $2.$ At Coffee Klatch the average selling price of a cup of coffee is $$1\mathrm{.}49,$ the average variable expense per cup is $$0\mathrm{.}36,$ the average fixed expense per month is $$1,300,$ and an average of $2,100$ cups are sold each month.

If sales increase by $20\%,$ by how much should net operating income increase?

a$.30\mathrm{.}0\%$

b$.20\mathrm{.}0\%$

c$.22\mathrm{.}1\%$

d$.44\mathrm{.}2\%$