The following information applies to questions 9 and 10. Company A B Sales Variable cost Contribution margin Fixed expenses Operating income $100,000 60,000 40,000 20,000 20,000 $100,000 40,000 60,000 40,000 20,000 12 9. If Company A experiences a 30% increase in sales, operating income would increase to: A) $32,000 B) $24,000 C) $28,000 D) $36,000 10. Which of the following statements is true? A) Company A has a higher operating leverage than Company B. B) There is a higher possibility of net loss for Company A, if the economy shrinks. C) Company B has assumed higher risk than Company A, but also has a higher potential for profits if sales increase. D) Company A has assumed less risk than Company B, but has a higher Potential for profits if sales increase