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Theory Question regarding specific factors affecting firm's breakeven point.

Assuming that all other factors remain unchanged, determine how a firm's breakeven point is affected by each of the following:

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

2. The firm's direct labor costs increase as a result of a new labor contract.

3. The Occupational Safety as well as Health Administration requires the firm to install new ventilating equipment in its plant. (Assume that this action has no effect on worker production.)

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Category:- Basic Finance
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