Everything Else Remaining the Same, an Increase in Fixed Costs

question 58

Multiple Choice

Everything else remaining the same, an increase in fixed costs:
I. increases the break-even point based on NPV
II. increases the accounting break-even point
III. decreases the break-even point based on NPV
IV. decreases the accounting break-even point

• A) I and III only
• B) III and IV only
• C) II and III only
• D) I and II only

---

Definitions:

Anti-Assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties to another party without prior consent.

Donee Beneficiary

A third party who benefits from a contract in which one party promises to give a gift or perform a service for another.

Incidental Beneficiary

An individual or entity that gains unintentional benefit from a contract to which they are not a party.

Delegation

The act of assigning responsibility or authority from one person or group to another, often seen within organizational structures.