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Trump Company has a degree of operating leverage of 2.0 at a sales level of $2,000,000 and net income of $100,000. If the company sales

Trump Company has a degree of operating leverage of 2.0 at a sales level of $2,000,000 and net income of $100,000. If the company sales increase by 10%, Trump can be expected to experience an:

increase in net income of $10,000.

increase in contribution margin of $5,000.

increase in net income of $20,000.

increase in net income of $15,000.

increase in contribution margin of $1,000.

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