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

Question

Quizplus · Accepted Answer

In an automated firm, the safety margin might be lower due to high fixed costs, operating leverage is high because of the same high fixed costs (meaning profits are more sensitive to changes in sales volume), and profit potential is high due to efficiency and productivity gains from automation.

Would You Expect the Following to Be High or Low