For each of the following statements, indicate whether the statement is true or false.

a. Companies with the highest degree of operating leverage include those in service industries, such as insurance agencies, realtors, and law firms. Companies with the lowest degree of operating leverage include utilities, theme parks, railroads, and airlines.

b. At the breakeven point, contribution margin equals selling and administrative costs.

c. A cost behavior analysis provides the information needed to perform a CVP analysis.

d. After the breakeven point is identified, there is no value in performing a sensitivity analysis as variable costs, revenues, and fixed costs cannot be changed.

e. The number of products or services sold by a company is relevant when performing a CVP analysis and, therefore, should be considered when calculating the breakeven point.

f. The CVP analysis is a useful decision-making tool as it provides useful revenue and cost information that is not available from a traditional income statement.