If a firm's fixed financial costs decrease, the firm's operating break-even point will
A) change in an undetermined direction.
B) increase.
C) remain unchanged.
D) decrease.

Name: If a firm's fixed financial costs decrease, the firm's operating break-even point will A) change in an undetermined direction. B) increase. C) remain unchanged. D) decrease.
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Question

Quizplus · Accepted Answer

The operating break-even point is determined by fixed operating costs, not fixed financial costs.

If a Firm's Fixed Financial Costs Decrease, the Firm's Operating