Carver Packing Company Reports Total Contribution Margin of $72,000 and Pretax

Multiple Choice

Carver Packing Company reports total contribution margin of $72,000 and pretax net income of $24,000 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:

A) 0.33 and 2.7%
B) 3.0 and 8%
C) 3.0 and 24%
D) 4.0 and 32%
E) 0.33 and 8%