Operating leverage factor a. represents how responsive a company’s operating income is to changes in volume b. the lowest possible factor is 1, where the company has no fixed expenses (contribution margin / operating income) c. high operating leverage companies have high level of fixed costs d. all of the above

Jake and janelle loved to prepare gourmet meals for friends and family. they started a business of preparing theme-type dinners for friends who were having parties. to generate even more interest in the business, janelle created on her website. she posted pictures of events, and close-ups of the food they served. she encouraged patrons and others to post reviews, comments, and favorite recipes, and to share their own party ideas. her promotion became a dialogue between buyers of her service and the business. interactive promotion infomercials product placement broadcast