A company with high operating leverage:

a. is less sensitive to changes in sales.
b. has an equal proportion of fixed and variable costs.
c. has a greater proportion of fixed costs to variable costs.
d. has a greater proportion of variable costs to fixed costs.

c. has a greater proportion of fixed costs to variable costs.

Explanation:

Operating leverage refers to the how or the means through which firms or organization can increase their operating income by increasing their revenue generation. As a way, more quantity of goods has to be sold to make up the cost.

In other words, operating leverage is a way of determining a business break even point.

c. has a greater proportion of fixed costs to variable costs

Explanation: Operating leverage is a measure a firm’s fixed costs as a percentage of its total costs. In order words, it measures the amount of debt the firm uses in finance its operations.

A company with high operating leverage is one with a greater proportion of fixed costs to variable costs. As a result, the firm is affected by volume of sales each month (since it must attain sufficient sales volume to cover its substantial fixed costs) even though it earns a large profit on each incremental sale.

i would have to say its c

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