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If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in
If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in O unit contribution margin
O revenue
O variable expense
O net operating income
A degree of operating leverage of 4 indicates that a one percent change in quantity sold results in a four percent change in net operating income, highlighting how sensitive net operating income is to sales volume changes. Therefore, the correct option is D.If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in net operating income. This is because the degree of operating leverage measures the sensitivity of a company's net operating income to a change in sales volume. The higher the operating leverage, the more sensitive the net operating income is to variations in sales volume.For businesses with a high proportion of fixed costs compared to variable costs, such as software companies, this effect is particularly pronounced. After a company surpasses the breakeven point, most of the revenue from additional sales contributes to profit, making the company high risk but potentially high reward....