When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases.

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This is an economic advantage because:

a. the revenue per unit will increase.

b. the two lines will now cross at zero.

c. the profit will increase for the same revenue per unit.

d. the total cost line becomes nonlinear.

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Basics Of Engineering Economy

ISBN: 9780073376356

2nd Edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Oct 26, 2024 07:00 AM

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When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases.

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Basics Of Engineering Economy

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