TB MC Qu. 05-166 (Algo) Carver Packing Company reports total...

Carver Packing Company reports total contribution margin of $95,400 and income of $21,200 for the current month. In the next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:

Multiple Choice

• 4.0 and 32%

• 0.22 and 8%

• 0.22 and 4.1%

• 4.5 and 8%

• 4.5 and 36%