Company X and Y are similar in all respects except in their cost structure. Company X has mostly fixed costs and Company Y has mostly variable costs in their cost structure. Both X and Y register the same percentage increase in sales volume in Year 2 compared to Year 1. If you compare the operating profits from year 2 to year 1
a. Company X is expected to have a larger percentage increase in its operating profits
b. Company Y is expected to have a larger percentage change in its operating profits
c. Both X and Y are expected to have the identical percentage change in their operating profits
d. Company X is expected to have a smaller percentage change in its operating profits
e. Company Y is expected to have the larger percentage decrease in its operating profits
