When Management Selects Production Technologies That Include a High Proportion

question 80

Multiple Choice

When management selects production technologies that include a high proportion of fixed costs,it:

• A) decreases the DOL.
• B) increases the DOL.
• C) decreases the NPV-breakeven level of sales.
• D) reduces the NPV of the cash flows.

---

Definitions:

Feel

To experience emotions or sensations, either physically through the senses or emotionally through the mind and heart.

Socialization

The process by which individuals learn and internalize the norms, values, behaviors, and social skills appropriate to their society.

Integrate

To combine or incorporate parts into a whole, ensuring harmonious functioning or unity.

Recognize

To identify or acknowledge the presence, existence, or validity of something or someone.