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Would each of the following increase, decrease, or have an indeterminant effect on a firm's break-even point (unit sales )? a. The sales price increases with no change in unit costs. b. An increase in fixed costs is accompanied by a decrease in variable costs. c. A new firm decides to use MACRS depreciation for both book and tax purposes rather than the- straight-line depreciation method. d. d Variable labor costs decline; other things are held constant.

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Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781285867977
BuyFind

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781285867977

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Chapter
Section
Chapter 14, Problem 2Q
Textbook Problem

Would each of the following increase, decrease, or have an indeterminant effect on a firm's break-even point (unit sales )?

  1. a. The sales price increases with no change in unit costs.
  2. b. An increase in fixed costs is accompanied by a decrease in variable costs.
  3. c. A new firm decides to use MACRS depreciation for both book and tax purposes rather than the- straight-line depreciation method.
  4. d. d Variable labor costs decline; other things are held constant.

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