In 20A, KZ presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. Compare the operating leverage from 20A to 20B with the same variable and fixed costs, and sales price but 25,000 units are sold in 20B. (Use operating leverage = CM divided by Net income before tax.)
A. Increase from 3.21 to 4.17.
B. Decrease from 2.50 to 1.92.
C. Increase from 1.92 to 2.50.
D. Decrease from 4.17 to 3.21.