fixed operating costs

1. “One type of leverage affects both EBIT and EPS. The other type affects only EPS.” Explain what this statement means.
2. Finn A and Finn B are competitors in the same industry. The two firms have similar operating costs, except Firm A has more fixed operating costs than Firm B. As a result, which firm would experience a greater change in operating income as the result of a particular change in sales?

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