Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other western wear stores. Also, because of the rapid growth in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople.

Cost Strategy A st Cost Strategy B 685,000 T $680,000 5675,000 $670,000 5690,000 $685,000 $680,000 $675,000 5670,000 $665,000 $660,000 $655,000 $650,000 $660,000 $655000 $650,000 $645,000 D! 49,200 49,400 49,600 49, 50,000 so,200 50,400 SO,600 SO800 Sales in Units 49,200 49400 49,600 49,800 0,000 50,200 50,400 50,600 50,800 Sales in Units Total RevenueTotal Cost Total RevenueTotal Cost Which cost strategy has the lower operating leverage? Cost strategy A Cost strategy A and B have same fixed cost No feasible answer Cost strategy B has no fixed cost Cost strategy B