If Fixed Costs Decrease While Other Variables Stay Constant

question 61

Multiple Choice

If fixed costs decrease while other variables stay constant

• A) the break-even point decreases.
• B) degree of operating leverage decreases.
• C) total profit increases.
• D) all of the other answers are correct

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Definitions:

Optimal Choice

The best possible decision or selection made from a set of alternatives, given the constraints and objectives at hand.

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