Assuming All Other Things Are Equal, If There Was a Decrease

question 116

Multiple Choice

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

• A)decreased
• B)increased first, then decreased
• C)increased
• D)remained the same

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Definitions:

Income Bonds

Bonds that pay interest only when the issuer has earned sufficient profits.

Interest Expense

Interest expense refers to the cost incurred by an entity for borrowed funds over a period of time.

Semiannually

Semiannually implies an occurrence or calculation that happens twice a year, often used in the context of interest payments or reporting periods.

Annually

Occurring once every year or relating to a period of one year.