Higher fixed costs decrease the total contribution margin required to break even. True False lo 38 2.55 Operating leverage predicts the effects fixed costs have on changes in operating income when production is discontinued there are no sales returns variable costs change sales volume changes The traditional income statement format calculates operating income as gross profit minus selling and administrative expenses. True False 040 2.5 S Dessa, Inc. reports the following information for the year ended December 31: the beginning Finished Goods Inventory costs were $3.600 under absorption costing and $2,700 under variable costing. What is the operating income using variable costing