On the Breakeven Graph,if Sales Price and Variable Cost Remain

question 141

Multiple Choice

On the breakeven graph,if sales price and variable cost remain constant and fixed costs decrease,the breakeven point will

• A)Shift upward.
• B)Not shift.
• C)Shift to the right.
• D)Shift to the left.

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Definitions:

Companies Existence

Refers to the legal recognition and status of a corporation as an entity that is separate and distinct from its owners or shareholders.

Parent Corporation

A corporation that owns all of the shares of another corporation (known as its subsidiary).

Holding Company

A type of corporation that owns enough voting stock in another company to control its management and policies.

Share Exchange

A transaction in which shares of one company are exchanged for shares of another company, often used in mergers and acquisitions.