Freedling---gearing risk

Sir there is a question in kit that board of freedling co are in discussion about the various risk types that face the business. It is evident that there is a considerable confusion and disagreement. Operating risk Some of the directors feel that given the increasing volume of trade having fixed costs is the best thing to do. How can it be risky to have fixed costs when we know how much they are and that they don't change overly much from 1 year to the next was one comment. there was also a discussion about changing the cost structure. It was thought that this would be difficult as most staff , e.g, were paid a salary and moving them on to an hourly rate would be opposed by them. Gearing risk The directors were more aware in this area with some favoring a more traditional view of gearing and others remembering M & M fondly from their studies. Which Is the following statement true for operating gearing. Variable cost are risky because they change as volume changes. Given freedling is growing the year on year variable cost level has changed a lot as well. Sir the above statement is false, but can you please explain me this?