San Luis Obispo, California based SLOboards, Inc. manufactures a single line of paddleboards. For the year ended December 31, 2019, SLOboards manufactured and sold a total of 1,000 boards. The following information was compiled for 2019:

Sales Revenue . . . $500,000

Total Variable Costs . . . $150,000 Total

Fixed Costs . . . $160,000

SLOboards is considering relocating its operations to Morro Bay, California in 2021. If the company relocates to Morro Bay, the sales price will not change. The variable cost per board in Morro Bay will decrease by $50, but the total annual fixed manufacturing costs will increase by $45,000. Which of the following statements is incorrect?

A. If the company relocates to Morro Bay and desires a $195,000 annual target profit, it must generate sales revenue of $400,000 in 2021.

B. If operations are moved to Morro Bay, the annual breakeven point would be 55 units higher than the annual breakeven point in San Luis Obispo.

C. If annual unit sales in 2021 are expected to be greater than 900, the company should move its operations to Morro Bay.

D. SLOboards' 2019 operating income was $190,000. E. The San Luis Obispo cost structure is considered the low operating leverage option for SLOboards' operations.