When the level of fixed costs is decreased,the break-even level of revenues:
A) will automatically decrease.
B) will automatically increase.
C) may or may not change, depending on variable costs.
D) will remain unchanged as long as depreciation remains constant.

Question

Quizplus · Accepted Answer

When fixed costs decrease, the break-even level of revenues may or may not change, depending on the change in variable costs.

When the Level of Fixed Costs Is Decreased,the Break-Even Level