Sebree Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7.000 units) Variable expenses Contribution margin Fixed expenses Net operating income 100,000 40,000 60,000 45,000 15,000 $ Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 6% increase in sales is closest to: (Round your intermediate calculations to 1 decimal place.) O 0.20% 0 24.0% 0.24% 0 20.0% The Himalayan Salt Distribution Company has provided the following information regarding 10 lb bags of salt: Selling price (per 10 lb bag) Variable expenses (per 10 lb bag) Contribution margin (per 10 lb bag) Per Unit $ 110 50 $ 60 Percent of Sales 100% 40% 60% Fixed expenses are $30,000 per month and monthly net income is $30,000. The company is currently selling 1,000 units per month. The salt bag product manager would like to cut the selling price by $10.00 and increase the advertising budget by $20,000 per month. The product manager predicts that these two changes would increase monthly sales by 1,000 units. What should be the overall effect on the company's monthly net operating income of this change? increase of $20,000 increase of $120,000 increase of $50,000 increase of $100,000