Miller Company Has an Operating Leverage Factor of 5

Multiple Choice

Miller Company has an operating leverage factor of 5. Thus, an 8% change in ______ should result in a 40% change in ______. The respective amounts that change are:

A) net income; sales revenue.
B) sales revenue; net income.
C) variable cost; contribution margin.
D) fixed cost; net income.
E) variable cost; break-even sales.