Lofft Corporation Has Provided the Following Contribution Format Income Statement

Multiple Choice

Lofft Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 10% increase in salesvolume is closest to: (Round your intermediate calculations to 1 decimal place.)

A) 1.13%
B) 88.89%
C) 22.22%
D) 4.50%