Everything else remaining the same, an increase in fixed costs:  I- increases the break-even point based on NPV  II- increases the accounting break-even point  III- decreases the break-even point based on NPV  IV- decreases the accounting break-even point  A. I and III only  B. III and IV only  C. II and III only  D. I and II only

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 12MC: When variable costs increase and all other variables remain unchanged, the break-even point will...
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Everything else remaining the same, an increase in fixed costs: 
I- increases the break-even point based on NPV 
II- increases the accounting break-even point 
III- decreases the break-even point based on NPV 
IV- decreases the accounting break-even point 
A. I and III only 
B. III and IV only 
C. II and III only 
D. I and II only  

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