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Bruce Company Recently Reduced Its Advertising Budget

Question 21

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Bruce Company recently reduced its advertising budget. All other costs and revenues were unchanged. Select the response that indicates the impact of the advertising cuts on the company's break-even point and margin of safety.  Breakeven Point  Margin of Safety  A) Increase  Increase  B) Decrease  Decrease  C) Increase  Decrease  D) Decrease  Increase \begin{array}{ll}\text { Breakeven Point } & \text { Margin of Safety }\\\text { A) Increase } & \text { Increase } \\\text { B) Decrease } & \text { Decrease } \\\text { C) Increase } & \text { Decrease } \\\text { D) Decrease } & \text { Increase }\end{array}

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