Shambo Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units)$60,000Variable expenses 42,000Contribution margin 18,000Fixed expenses 13,200Net operating income$4,800 Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 20% increase in sales is closest to:
A. 1.60%
B. 250.00%
C. 5.33%
D. 75.00%
Answer: D
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