If a firm's fixed operating costs decrease, the firm's operating break-even point will
A) decrease.
B) change in an undetermined direction.
C) increase.
D) remain unchanged.

Name: If a firm's fixed operating costs decrease, the firm's operating break-even point will A) decrease. B) change in an undetermined direction. C) increase. D) remain unchanged.
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Question

Quizplus · Accepted Answer

A decrease in fixed operating costs means the firm will need less revenue to cover its expenses, thus the operating break-even point will decrease.

If a Firm's Fixed Operating Costs Decrease, the Firm's Operating