The break-even point may be reduced by reducing total fixed costs and holding everything else constant.

Name: The break-even point may be reduced by reducing total fixed costs and holding everything else constant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The break-even point is the point at which total costs (fixed and variable) are equal to total revenue. Therefore, if fixed costs are reduced, the breakeven point would also be reduced as the revenue needed to cover costs would be lower.

The Break-Even Point May Be Reduced by Reducing Total Fixed