Purchase Solution

Effects on break even points.

Not what you're looking for?

Ask Custom Question

Would each of the following increase, decrease, or have an indeterminant effect on a firm's breakeven point (unit sales)?

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

Purchase this Solution

Solution Summary

Effects on break-even points are investigated.

Solution Preview

Break even point= Fixed costs/ (Sales price per unit - unit variable costs)

a. An increase in the sales price with no change in unit costs.
It will lead to reduction in break even point

b. An ...

Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)