The Fulcrum Company produces decorative swivel platforms for home televisions. If Fulcrum produces 40 million units, it estimates that it can sell them for \($100\) each.

Variable production costs are \($65\) per unit and fixed production costs are \($1.05\) billion.

Which of the following statements is most accurate? Holding all else constant, the Fulcrum Company would:

A. generate positive operating income if unit sales were 25 million.

B. have less operating leverage if fixed production costs were 10% greater than \($1.05\) billion.

C. generate 20% more operating income if unit sales were 5% greater than 40 million.