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problem: Suppose that all other factors remain unchanged; determine how a firms breakeven point is affected by each of the following;

[A] The Occupational Safety & Health Administration requires the firm to install new ventilating equipment in its plant. [Suppose that this action has no effect on worker production.]

[B] The firm finds it necessary to reduce the price per unit because of competitive conditions in the market.

[C] The firms direct labor costs increase as a result of a new labor contract.

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  • Reference No.:- M916318

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