Which of the following statements is not true? Companies that have higher fixed costs relative to variable costs have higher operating leverage. When a companys sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly. When a companys sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease. Operating leverage refers to the extent to which a companys net income reacts to a given change in sales.