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

a. An increase in the sales price with no change in unit costs.

b. An increase in fixed costs 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. Variable labor costs decline; other things are held constant.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9396024

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