If fixed costs decrease while other variables stay constant
A) the break-even point decreases.
B) degree of operating leverage decreases.
C) total profit increases.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

A decrease in fixed costs lowers the break-even point, reduces the degree of operating leverage, and increases total profit, making all options correct.

If Fixed Costs Decrease While Other Variables Stay Constant