answer and explain

The following information is for Companies M and N for the most recent year Company M Company N $500,000 $500, e0e $300,000 $200,eee $ 50,000 $15e.oee Sales Varlable costs Net Income on this information, which of the following statements is incorrect? Based Company M Company $500,000 $5e0,eee $300,000$200,eoe $ 50,900 $150,e00 Sales Variable costs Net Income Based on this information, which of the following statements is incorrect? Multiple Choice s magnitude of operating leverage was lower than Ns. M's magnitude of operating leverage was lower than N's N would suffer more than M from an equal drop in sales revenue. N's cost structure carries greater risk and greater potential for profit If N's sales increased by 20% its net income would increase by 40%