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:

Associative Learning

The process of learning in which a connection is made between two stimuli or a stimulus and a behavior, fundamental in behavioral psychology.

Stimuli

External factors or changes in the environment that influence the behavior or responses of individuals.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Behaviors Increase

A rise in the frequency or intensity of actions or mannerisms.