Would you expect the following to be high or low in an automated firm: (1) safety margin, (2) operating leverage and (3) profit potential?

A) Low, high, high
B) High, high, low
C) Low, high, low
D) High, low, low

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.

Safety Margin

The difference between the actual sales and the break-even point; it measures the amount by which sales can drop before a business incurs a loss.

Automated Firm

An enterprise that employs advanced technologies and systems such as artificial intelligence, robotics, and sophisticated software to minimize human intervention in its operations.