Answer and explain why

The following information is for Companies M and N for the most recent year Company M Company N $500,00 $500,000 $300,000 $200,000 $50,000 $150,000 Sales Variable costs Net Income Based on this information, which of the following statements is incorrect? Multiple Choice sdved Based on this information, which of the following statements is incorrect? Multiple Choice M's magnitude of operating leverage was lower than N's. N would suffer more than M from an equal drop in sales revenue M's magnitude of operating leverage was lower than N's M N would sufer more 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. C) If N's sales increased by 20%, its net incom e would increase by 40%