Answer
a) If the selling price per unit decreased, the total revenue line would rise less steeply, and the break-even point would occur at a higher unit volume.
b) If the fixed cost increased throughout the entire range of activity portrayed on the graph, then both the fixed cost line and the total cost line would shift upward and the break-even point would occur at a higher unit volume.
c) If the variable cost per unit increased, the total cost line would rise more steeply and the break-even point would occur at a higher unit volume.
Work Step by Step
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