Log Homes on Spec (LHOS)in British Columbia Makes Log Home

question 174

Multiple Choice

Log Homes on Spec (LHOS) in British Columbia makes log home kits. Currently, the company does not advertise and has a low selling price for its kits compared to competitors. Next year, the company plans to increase the selling price and begin a wide advertising campaign. Which of the following statements is true?

• A)LHOS's breakeven point will be lower next year
• B)LHOS's operating leverage will be higher next year if the same number of units is sold
• C)LHOS's profits will be higher next year
• D)LHOS's margin of safety will be lower next year

---

Definitions:

Sexuality

The capacity for sexual feelings and their expression, including sexual orientation, desires, practices, and identity.

Homophobia

The intense fear and intolerance of homosexuals.

Cross-gender Typing

A behavior or expression that does not align with traditional or societal expectations for a person's gender.

Homophobia

The fear, aversion, or discrimination against homosexuals or homosexuality.