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 is typically low due to high fixed costs. Operating leverage is high because fixed costs are a larger proportion of total costs, amplifying the effect of sales changes on profits. Profit potential is high due to efficiency and scalability.

Would You Expect the Following to Be High or Low