A 10% Change in a Firm's Revenues Is Likely to Result

A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because:

A) not all of the firm's costs will change in proportion to the revenue change.
B) the firm has financial leverage.
C) the contribution margin ratio will change in proportion to the revenue change.
D) only fixed expenses will change in proportion to the revenue change.