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Ostler Company's net operating income last year was $10,000 and its contribution margin was $50,000.

Ostler Company's net operating income last year was $10,000 and its contribution margin was $50,000. Using the operating leverage concept, if the company's sales increase next year by 8 percent, net operating income can be expected to increase by:
A) 20%
B) 16%
C) 160%
D) 40%