If firm A uses more operating leverage than firm B,firm A will probably have a greater percentage profit margin per unit than firm B,if both firms are otherwise identical and operating above their respective operating breakeven levels.

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Operating leverage refers to the degree to which fixed costs are used in a company's operations. A company with higher operating leverage will have a higher proportion of fixed costs relative to variable costs. This means that when sales increase, the company's profits will increase by a larger percentage due to the higher contribution margin. However, when sales decrease, the company's profits will decrease by a larger percentage.

If both firms are identical in all other aspects and are operating above their respective operating breakeven levels, then a higher operating leverage would result in a greater percentage profit margin per unit for firm A compared to firm B. This is because firm A has a higher proportion of fixed costs, which means that a higher percentage of each unit's revenue will contribute to profits.

If Firm a Uses More Operating Leverage Than Firm B,firm