1. High operating leverage means (choose one):

(a) The company has relatively low fixed costs.

(b) The company has relatively high fixed costs.

(c) The company will have to sell more units than a comparable company with low operating leverage to break even.

(d) The company will have to sell fewer units than a comparable company with low operating leverage to break even.

(e) Both (b) and (c) are correct.

(f) Both (a) and (d) are correct.