(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)?

  1. An increase in the sales price with no change in unit costs.
  2. An increase in fixed costs accompanied by a decrease in variable costs.
  3. A new firm decides to use MACRS depreciation for both book and tax purposes
    rather than the straight-line depreciation method.
  4. Variable labor costs decline; other things are held constant.

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