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:

Surrealistic View

A perspective that seeks to transcend reality by emphasizing the bizarre, illogical, and fantastical aspects.

Deviant Behavior

Refers to actions that deviate from the social norms, values, or ethics of a given society.

Homicide

The act of one human killing another, which can range from unintentional manslaughter to premeditated murder.

Social Integration

The process by which individuals or groups are incorporated into the social structure and culture of a community or society.