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