to be solved on paper

1. Calculate operating leverage for each of the four firms A, B, C and D from the following price and cost data. What conclusions do you draw with respect to levels of fixed cost and degree of operating leverage? Assume number of units sold is 5000. A B c D Sale price per unit 20 32 50 70 Variable cost per unit 6 16 20 50 Fixed operating cost 80000 40000 200000 Nil