The following income statements are available for Red and Blue Company. Red Company Blue Company Sales revenue $700,000 $700,000 Variable costs 350,000 170,000 Fixed costs | 150,000 330,000 Net income $200,000 $200,000 A comparison of the two companies results in the following conclusion: O Blue Company has a higher degree of operating leverage and lower risk of earnings volatility. O Blue Company has a lower degree of operating leverage and lower risk of earnings volatility. O Blue Company has a higher degree of operating leverage and higher risk of earnings volatility. O Blue Company has a lower degree of operating leverage and higher risk of earnings volatility