Kroger's CEO is amazed by his current cost He tells his shareholders, "Compared to other industries our variable costs are much higher relative to fixed costs." Kroger's cost structure (probably) results in a relatively:

Low contribution margin ratio and low degree of operating leverage.

Insufferable CEO

High contribution margin ratio and low degree of operating leverage.

High contribution margin ratio and high degree of operating leverage.

Low contribution margin ratio and high degree of operating leverage.