A firm with high operating leverage has:. a. high fixed costs in its production process.
b. high variable costs in its production process.
c. high costs per unit. low fixed costs in its production process.
d. low costs per unit.

c. high costs per unit. low fixed costs in its production process.

Explanation:

Operating leverage is a cost-accounting formula that helps in the measurement of the degree to which a firm or project can increase operating income by increasing revenue. For example, a business that generates sales with a high gross margin and low variable costs has high operating leverage.

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