Why would a company choose the higher operating leverage cost structure if it sales voume...
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Accounting
Why would a company choose the higher operating leverage cost structure if it sales voume is expected to be above the indifference point?
A.
The break-even point has not been achieved for the lower operating leverage cost structure.
B.
The contribution margin percentage for the lower operating leverage cost structure increases at the higher sales volume.
C.
The increase in the fixed costs is paid for the by the increase in the unit contribution margin.
D.
The operating income for the cost structure with the lower operating leverage is higher .
E.
The increase in the total variable costs is offset by the higher sales volume.
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