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

Sales (7,000 units)	$	280,000
Variable expenses		168,000
Contribution margin		112,000
Fixed expenses		105,600
Net operating income	$	6,400

Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 5% increase in sales is closest to: (Round your intermediate calculations to 1 decimal place.)

Multiple Choice

87.50%

0.29%

0.11%

218.75%