Looking at the following information provided for Company A. Would you consider it to have a high or low operating leverage and why?

Total Units Sold= 8.97million

Sales per unit - $25,000

Variable costs per unit - $13,500

Annual fixed expenses - $120,000

Contribution margin = sales per unit variable costs per unit

= $25,000 - $13,500

= $11,500

Contribution margin percent = contribution margin / sales

= $11,500 / $25,000

= 0.46 or 46%