The degree of operating leverage for Madrigal Company is 4. The actual operating income is $20,000. If the company expects a 5% increase in sales, operating income should increase by $10,000. True FalseClay Earth Company sells ceramic pottery at a wholesale price of $5 per unit. The variable cost of manufacturing is $2.00 per unit. The fixed costs are $6,000 per month. It sold 4, 100 units during this month. Calculate Clay Earth's operating income (loss) for this month. O A. $14,500 O B. $(6,000) O C. $6,300 O D. $(6,300)