Miller Company Has an Operating Leverage Factor of 5

question 54

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.

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Definitions:

Media Companies

Organizations involved in the production and distribution of news, entertainment, or information through various platforms.

Press Freedom Index

A ranking of countries compiled annually to evaluate the level of freedom available to journalists and media organizations, often reflecting the degree of press freedom and censorship.

Reporters Without Borders

An international non-profit organization that promotes and defends the freedom of the press and the right to information worldwide.

Norway

A country in Northern Europe known for its fjords, mountains, and deep coastal inlets.