(See) on page 453 Would each of the following increase, decrease, or have an indeterminant effect on a firm’s breakeven point (unit sales)? An increase
Question: 2 on page 453
Would each of the following increase, decrease, or have an indeterminant effect on a
firm’s breakeven point (unit sales)?
- An increase in the sales price with no change in unit costs.
- An increase in fixed costs accompanied by a decrease in variable costs.
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A new firm decides to use MACRS depreciation for both book and tax purposes
rather than the straight-line depreciation method. - Variable labor costs decline; other things are held constant.
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