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

question 150

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%

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Definitions:

Gross Motor Skills

Physical abilities that involve large muscle activities such as walking, running, jumping, and climbing.

Large Muscle Groups

Collections of muscles in the body that contribute to major movements, such as those in legs, back, and chest.

Physical Play

Activities that engage the body in movement and play, promoting physical fitness, coordination, and motor skills in individuals.

Older Preschoolers

Children aged between 4 to 5 years, nearing the end of their preschool period and preparing to enter kindergarten.