Which of the following statements best describes why a company would choose the higher operating leverage cost structure if its sales volume is expected to be above the calculated indifference point in units?

A.

There is a tradeoff between variable costs and fixed costs in the cost structure.

B.

The unit variable cost is greater than the sales price above the indifference point.

C.

The increase in fixed costs has been paid for by the increase in the unit contribution margin.

D.

The contribution margin is less than the fixed costs below the indifference point.

E.

The increase in fixed costs has not been paid for by the increase in the unit contribution margin.