Question: Operating leverage for ACDC Company is 3.5 for current sales of $100,000 and current net income of $20,000. Which of the following statements (I, II)

Operating leverage for ACDC Company is 3.5 for current sales of $100,000 and current net income of $20,000. Which of the following statements (I, II) is/are true? I. If sales increase by 2%, net income will increase by 7%. II. Current contribution margin is $70,000. A. Only statement I is true. B. Only statement II is true. C. Neither statement is true. D. Both statements I and II are true

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