For CVP analysis calculations, which of the following statements is incorrect?

A.

The break-even point is the point at which operating income is equal to $0.

B.

If sales volume is expected to be higher than the indifference point, management should choose the cost structure with higher fixed costs.

C.

A company's sales mix is ultimately determined by the market.

D.

CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit.

E.

In target profit calculations, sales revenue exceeds total costs.