On the breakeven graph,if sales price and variable cost remain constant and fixed costs decrease,the breakeven point will

Question

Quizplus · Accepted Answer

The breakeven point is the point at which total revenue equals total cost (fixed cost + variable cost). Therefore, if fixed costs decrease, the total cost curve will shift down (to the left). This means that the breakeven point will also shift to the left, indicating that fewer units need to be sold to cover the total cost and reach the breakeven point. Hence, the correct answer is D, "Shift to the left."

On the Breakeven Graph,if Sales Price and Variable Cost Remain