McGraw Hills Corporation sells managerial accounting textbooks. Fixed costs are $120,000 and variable costs per unit are $20. McGraw Hills is considering the purchase of new equipment that would reduce hourly labor. However, total costs will remain the same. What effect would the purchase of the new equipment have on McGraw Hills operating leverage?

A) No effect. Operating leverage will stay the same because total costs do not change.

B) Operating leverage will increase.

C) Operating leverage will decrease.

D) The problem does not provide enough information to answer the question