If Fixed Costs Decrease, but Variable Cost and Price Remain

question 120

Multiple Choice

If fixed costs decrease, but variable cost and price remain the same, the break-even point

• A) decreases.
• B) increases.
• C) remains the same.
• D) may increase or decrease depending on sales.

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Definitions:

Straight Rebuy

A routine purchase of the same goods or services without seeking new suppliers or altering specifications.

Need-Satisfaction

A sales approach focused on identifying and meeting the needs of the customer as a primary way to close sales.

AIDA

A marketing model that outlines the process for achieving successful advertising and promotion, standing for Attention, Interest, Desire, and Action.

Formula Presentation

A structured, step-by-step sales presentation methodology designed to lead a prospect to a purchasing decision.