Which of the Following Statements Is True

question 24

Multiple Choice

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

---

Definitions:

Transmissible Disease

An infectious disease that can be spread from one individual to another, either directly or via an intermediary such as a vector.

Living Organism

Any entity that exhibits the characteristics of life, such as growth, reproduction, and the capacity for metabolic activity.

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, suggesting action to avoid or diminish harm.

Scientific Research

The systematic investigation and study of materials, sources, etc., in order to establish facts and reach new conclusions.