The proposal to automate the process of expansion of a factory will alter the cost...
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Accounting
The proposal to automate the process of expansion of a factory will alter the cost structure of the company. Which of the following statements is LEAST accurate in respect to the impact automation will have on the financial profile of the company?
A. As automation increases, a percentage change in revenue will have a bigger impact on net income.
B. Automation will likely increase the sales break-even point.
C. As automation increases, a small percentage change in sales will have a bigger impact on operating income.
D. Automation will decrease operating leverage, because a greater proportion of a firm's cost structure will be fixed.
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