Miller Company has an operating leverage factor of 5. Which of the following statements is true?
Thus, an 8% change in ______ should result in a 40% change in _____. The respective amounts that change are:
An 8% change in variable costs should result in a 40% change in contribution margin.
An 8% change in fixed costs should result in a 40% change in income.
An 8% change in variable costs should result in a 40% change in break-even sales.
An 8% change in sales revenue should result in a 40% change in income.
An 8% change in income should result in a 40% change in sales revenue.