1. Company 1 has fixed costs comprising 80% of its total costs. Company 2 has fixed costs comprising of 70% of its total costs. Which company has the higher operating leverage. Which company would perform the best? 2. Company 1 and 2 have the same cost structures (fixed and variable cost identical). Company 1 has a 5% increase in revenue driven by price, Company 2 has a 5% increase in revenue driven by volume. Which company will experience an increase in margins