SQU E-LEARNING SYSTEM (ACADEMIC) elearn.squeducom/mod/quer Time left 1:56.39 Question 9 XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. However, due to high commission fees, the variable cost per unit is also expected to double. Assuming that the selling price per unit and fwed costs remain unchanged, what would be the effect on profit? Not yet answered Marked out of 0.60 P Flag question O a Profit would increase b. None of the given answers OC Profit would remain unchanged O d. Cannot be determined using the information in the question. e. Profit would decrease Which of the following statements about operating leverage is false? Question 10 Not yet answered Marked out of 0.60 a. All of the given answers are true. O b. The degree of operating leverage is higher for companies with higher fixed costs Oc. Keeping all factors constant, the higher the contribution margin, the higher the operating leverage O d. If the degree of operating leverage higher for a company, this means that the company is less risky than another company with low degree of operating leverage. O.e. Operating leverage measures how operating income will be affected by changes in sales Plas Question ENG 4 = T.TV/ te o