Which of the following statements regarding a relatively high degree of operating leverage is correct?

Firms with higher degrees of operating leverage are less risky and more likely to earn a profit than those with lower degrees

of operating leverage.

Firms with a higher degree of operating leverage will see a steeper increase in fixed costs as sales volume increases.

Firms with a higher degree of operating leverage will see a steeper increase in operating profit as sales volume increases.

Firms with a relatively low fixed cost structure will have a higher degree of operating leverage.