what comment can I make about A company with high operating leverage faces greater financial risk in a declining sales period because it has a higher proportion of fixed costs to variable costs. This means that even if sales decline, the company still has to pay a significant amount of fixed costs, such as salaries, rent, and depreciation. As a result, the company's profitability will decline more sharply than a company with low operating leverage, which has a higher proportion of variable costs to fixed costs. Contribution Margin (CM) represents the difference between sales revenue and variable costs. It shows the amount of money available to cover fixed costs and generate profit. CM is calculated as: CM = Sales Revenue - Variable Costs The Contribution Margin has a direct relationship with Operating Leverage. A company with a high CM has a higher operating leverage, as it has a higher proportion of fixed costs to variable costs. This means that small changes in sales can lead to large changes in profitability. On the other hand, a company with a low CM has a lower operating leverage, as it has a higher proportion of variable costs to fixed costs. This means that changes in sales will have a less pronounced effect on profitability. In a declining sales period, a company with high operating leverage and a high CM will experience a sharper decline in profitability, as the fixed costs remain the same while sales revenue decreases. In contrast, a company with low operating