If fixed costs rise while other variables stay constant
A)the break-even point rises.
B)the degree of operating leverage increases.
C)total profit declines.
D)All of the options

Question

Quizplus · Accepted Answer

If fixed costs rise while other variables stay constant, the break-even point rises, resulting in a decrease in total profit. Additionally, the degree of operating leverage increases because fixed costs now represent a larger portion of the total costs, leading to a greater impact on profits. Therefore, all of the options apply.

If Fixed Costs Rise While Other Variables Stay Constant