Firm X has a production process that has a total joint cost of $15,000. At the split-off point, there are 2,000 pounds of Product 1 and 3,000 pounds of Product 2. What is the cost per pound of Product 1 using the physical measure method?

$2.50.

$3.00.

$3.50.

$4.00.

High operating leverage represents increased risk associated with relatively:

		High variable costs in the firm's cost structure.
		High fixed cost in the firm's cost structure.
		High sales revenue combined with high variable costs.
		High asset turnover.
		High levels of unit-level (i.e., volume-related) costs.