$1.$ High operating leverage means $($choose one$)$: $(5\mathrm{.}5)$

$($a$)$ The company has relatively low fixed costs.

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$($b$)$ The company has relatively high fixed costs.

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$($c$)$ The company will have to sell more units than a comparable company with low operating leverage to break even.

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$($d$)$ The company will have to sell fewer units than a comparable company with low operating leverage to break even.

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$($e$)$ Both $($b$)$ and $($c$)$ are correct.

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$($f$)$ Both $($a$)$ and $($d$)$ are correct.

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Base Case

Sales price per unit

$$250$

Variable cost per unit

$$150$

Monthly fixed costs

$$50,000$

Volume of sales

$700$ units