When advanced manufacturing systems are installed, what effect does such installation usually have on fixed costs and the break-even point?
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E

Question

When advanced manufacturing systems are installed, what effect does such installation usually have on fixed costs and the break-even point? 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Quizplus · Accepted Answer

When advanced manufacturing systems are installed, fixed costs tend to increase due to the initial investment required for the technology. However, the increased efficiency and productivity often lower variable costs, which ultimately reduces the break-even point. Therefore, advanced manufacturing systems typically have a positive effect on a company's profitability in the long term, despite the initial increase in fixed costs.

When Advanced Manufacturing Systems Are Installed, What Effect Does Such