Which of the following statements correctly differentiates catching-up growth from cutting-edge growth? A. Cutting-edge growth leads to convergence, while catching-up growth does not. B. Poorer countries with low levels of capital stock will always display catching-up growth, while rich countries will not. C. Catching-up growth comes primarily from capital accumulation, while cutting-edge growth comes from technological development. D. Catching-up growth can go on indefinitely, while cutting-edge growth cannot.

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.