For a utility company and an automobile company, for both the cases, the final product is largely different. One is dealing with manufacturing of the automobiles and the other one is concerned with the production of power. The demand of power will stay more or less same (although in the long term, it will increase, but that increment will be eventual), but automobile industry can fluctuate highly. As a result, the leverage may be higher in case of automobile industry. 3. Explain how the break-even point and operating leverage are affected