Question 11 1 pts The profit in cost-volume-profit equations is the same as the net operating income on a contribution income statement. True O False Question 12 1 pts Which of the following statements is FALSE? o When a company's sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly. o Operating leverage refers to the extent to which a company's net income reacts to a given change in sales. o When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenue decrease. o Companies that have higher fixed costs relative to variable costs have higher operating leverage Question 13 1 pts The most likely strategy to reduce the break-even point would be to o decrease the fixed costs and increase the contribution margin. o decrease both the fixed costs and the contribution margin. o increase the fixed costs and decrease the contribution margin. o increase both the fixed costs and the contribution margin. Question 14 1 pts All other things the same, in periods of increasing sales, net operating income will tend to increase more rapidly in a company with high variable costs and low fixed costs than in a company with high fixed costs and low variable costs. True O False