Winter Corporations current sales are $500,000. The contribution margin is $300,000 and the net operating income is $100,000. What is the companys degree of operating leverage?

• 3.00

• 0.60

• 2.00

• 1.67

The current sales of Trent, Incorporated, are $400,000, with a contribution margin of $200,000. The company's degree of operating leverage is 2. If the company anticipates a 30% increase in sales, what is the percentage change in net operating income for Trent, Incorporated?

• 24%

• 30%

• 60%

• 25%