QUESTIONS Firm X and Firmy are competitors within the same industry. Firm has an operating leverage of 2 while my has an operating leverage of projected for both are less than in the prior year which statement regarding projected profits is true? O APX will one more profe than Y OB.Firmy will lose more profe than Fium X O Firms and will lose the same amount of profit OD. Neither Form X ner Firmy wil le profit QUESTION 4 Biggers company expects the following results for the next accounting period: Sales Revenue for sales volume of 3.000 units Variable costs for sales volume of 3,000 units Total forced costs $240,000 135,000 40,000 The sales manager believes sales volume could be increased by 400 units to 3,400 units if fed advertising expenditures were increased by $10,000. f advertising expenditures are increased by $10,000 and sales increase by 400 units, the effect on Operating income will be ain) O A increase of S14,000 OB.increase of 522,000 o increase of $4,000 O increase of $30,000 None of these