If a Firm's Fixed Operating Costs Decrease, the Firm's ________

question 178

Multiple Choice

If a firm's fixed operating costs decrease, the firm's ________.

• A) operating breakeven point will decrease
• B) operating breakeven point will increase
• C) sale price per unit will decrease
• D) sale price per unit will increase

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Definitions:

Cost Of Goods Sold

The total cost of materials and labor directly associated with the production of goods sold by a business.

Direct Costs

Direct costs are expenses directly associated with the production of goods or services, such as materials and labor.

Global Capital Market

The worldwide financial markets in which money flows for the purpose of investment and financing across different countries.

Volatile Exchange Rates

Exchange rates that fluctuate widely in a short period of time, affecting the value of currencies traded on the foreign exchange market.