If Fixed Costs Decreases While Other Variables Stay Constant

question 31

Multiple Choice

If fixed costs decreases while other variables stay constant:

• A) the break-even point increases.
• B) degree of operating leverage increases.
• C) total profit decrease.
• D) total profit increases.

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Definitions:

Process

A series of actions or steps taken to achieve a particular end.

Stimulus Motive

Innate tendencies that prompt individuals to engage in behaviors without being aware of the reason for doing so, driven by external stimuli.

Incentives

External rewards or stimuli that motivate behavior or encourage action towards a desired goal.

Need For Affiliation

A person's desire to create and maintain social relationships and bonds with others.