Which of the Following Statements Is True of Operating Leverage

Multiple Choice

Which of the following statements is true of operating leverage?

A) It is the difference between price and unit variable cost.
B) It is the use of fixed costs to increase the percentage changes in profits as sales activity changes.
C) It shows how far a company's actual sales and/or units are above or below the break-even point.
D) It is the ratio of total contribution margin to sales or of unit contribution to price.
E) None of these