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Question
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%
Answer
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Variable manufacturing overhead
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