A financial analyst is interested in ascertaining business risk of two similar firms. If all operating data for the two firms were the same, save the following differences, which firm would have...

A financial analyst is interested in ascertaining business risk of two similar firms. If all operating data for the two firms were the same, save the following differences, which firm would have greater amount of business risk in each instance?

(a) Firm X has a higher sales level than Firm Y.

(b) Firm X has a higher EBIT level.

(c) Firm Y has a lower variable cost ratio.