Analyze the information below carefully, calculate the Operating Leverage for this Firm. Is this a favorable ratio? Revenue $ 550,000 _(250,000) Variables costs Contribution margin 300,000 Fixed costs EBIT _(200,000) 100,000 _ _(25,000) $ 75,000 Finance costs Profit for the year **Hint Operating Leverage = Contribution Margin EBIT a. The operating leverage ratio is 0.333 which signals a favorable ratio b. The operating leverage ratio is 3.0, this indicates the company has relatively high fixed costs compared to variable costs and more risk C. The operating leverage ratio is 0.333 which signals a favorable ratio d. The operating leverage ratio is 3.0, this indicates the company has relatively low fixed costs compared to variable costs and less risk