Change in contribution margin

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Reference no: EM13827078

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.

Reference no: EM13827078

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