Company X has a degree of operating leverage of 10, whereas, Company Y has a degree of operating leverage of 5. Each company has the same level of sales. Which of the following statements is true? sales increase by 10%. Company Y would have a higher increase in before-tax profit Company X has a higher relative amount of fixed costs in its cost structure than does Company Y If sales decrease by 10%, Company X would have a lower decrease in before-tax profit. Company Y has a lower relative amount of variable costs in its cost structure than does Company X