The average price Washburn charges for a guitar is $349.This price must cover its average costs of $25 for direct materials and $120 in direct labor.It must also cover fixed expenses of $38,000.Assuming everything else stays the same, the company's planned move to Nashville, Tennessee, will reduce its fixed costs by $4,800.This would cause the slope of the total cost curve to _________ and the break-even quantity to _________.
A)decrease; stay the same
B)decrease; increase
C)increase; increase
D)stay the same; increase
E)stay the same; decrease

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The Answer of The average price Washburn charges for a guitar is $349.This price must cover its average costs of $25 for direct materials and $120 in direct labor.It must also cover fixed expenses of $38,000.Assuming everything else stays the same, the company's planned move to Nashville, Tennessee, will reduce its fixed costs by $4,800.This would cause the slope of the total cost curve to _________ and the break-even quantity to _________.
A)decrease; stay the same
B)decrease; increase
C)increase; increase
D)stay the same; increase
E)stay the same; decrease

The Average Price Washburn Charges for a Guitar Is $349