Which of the following statements is true?
A) If expected sales are lower than the indifference point, Blackmon would prefer Plan A
B) Plan A has a lower breakeven point than Plan B
C) If Plan B is adopted, the degree of operating leverage will decrease
D) The margin of safety will be larger if Plan A is adopted

Question

Quizplus · Accepted Answer

If expected sales are lower than the indifference point, Blackmon would prefer Plan A because it likely has lower fixed costs, making it more favorable at lower sales levels.

Which of the Following Statements Is True