Suppose company A has higher operating leverage as compared to Company B
Then to produce same level of output (no. of units of a commodity) Conpany A would need to invest more as compared to company B and hence company A would have higher Break even point
Also if Company A and B incur the same amount of Total Cost, then Company A would produce relatively fewer units as compared to company B and hence would make fewer sales and charge higher prices (higher margin) to increase its profits
Company A&B are producing same commodity
Am I correct????