Everything Else Equal, a Firm Can Reduce Its Operating Breakeven

question 157

Multiple Choice

Everything else equal, a firm can reduce its operating breakeven point by

• A)increasing its fixed costs.
• B)decreasing the selling price of the product that is sold.
• C)increasing the contribution margin, which is the product's selling price less its variable cost.
• D)increasing the variable cost per unit.
• E)None of the above is correct.

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Definitions:

IR

Infrared spectroscopy, a technique used to identify and study chemicals through the interaction of infrared radiation with molecular vibrations.

Singlet

A state in which all electrons in an atom or molecule are paired, resulting in no net spin.

Ppm

Short for parts per million, a unit of measurement used to denote the concentration of a substance in a solution or mixture.

NMR Spectrum

A representation that displays the different environments of hydrogen or carbon atoms in a compound as a result of nuclear magnetic resonance spectroscopy.