Which of the following statements about combined (operating \& financial) leverage is true? High operating leverage and high financial leverage offset one another, meaning that if sales increase by 10%, then Net Income will also increase by 10%. Usage of both operating and financial leverage reduces a firm's risk. If a firm employs both operating and financial leverage, any percent change in sales will produce a larger percent change in Net Income. A firm that is in a capital-intensive industry should use a higher level of financial leverage than a firm that employs low levels of operating leverage