The degree of operating leverage used in CVP analysis is highest for firms with high Multiple Choice fixed costs conversion costs sunk costs opportunity costs prime costs Vanguard combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. The company will likely find that: Multiple Choice Its high-volume products are over-costed Its high-volume products are under-costed all of its products are over-costed all of its products are under-costed its low-volume products are over-costed