Which of the following statements about operating leverage is false? O a Operating leverage measures how operating income will be affected by changes in sales O b. If the degree of operating leverage higher for a company, this means that the company is more risky than another company with low degree of operating leverage. Oc. Keeping all factors constant, the higher the contribution margin, the lower the operating leverage. O d. All of the given answers are true. Oe. The degree of operating leverage is higher for companies with higher fixed costs Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $9,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? a. Decrease by $5,000 b. Increase by $1,000 Increase by $2,000 d. No change e. Decrease by $6,000 C