The breakeven point is the point at which total revenue equals total costs, meaning the business is not making a profit or a loss. Variable costs are costs that change in proportion to the good or service that a business produces.

If variable costs decrease, it means that the cost of producing each unit of a good or service is less. This means that the total cost of producing a certain number of goods or services is also less.

Therefore, the breakeven point, which is the point at which total revenue equals total costs, would also decrease. This is because the business would need to sell fewer units of its good or service to cover its costs.

So, the answer is D. Decrease in the breakeven point.

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The breakeven point is the point at which total revenue equals total costs, meaning the business is not making a profit or a loss. Variable costs are costs that change in proportion to the good or service that a business produces.

If variable costs decrease, it means that the cost of producing each unit of a good or service is less. This means that the total cost of producing a certain number of goods or services is also less.

Therefore, the breakeven point, which is the point at which total revenue equals total costs, would also decrease. This is because the business would need to sell fewer units of its good or service to cover its costs.

So, the answer is D. Decrease in the breakeven point.

Knowee AI · Accepted Answer

The breakeven point is the point at which total revenue equals total costs, meaning the business is not making a profit or a loss. Variable costs are costs that change in proportion to the good or service that a business produces.

If variable costs decrease, it means that the cost of producing each unit of a good or service is less. This means that the total cost of producing a certain number of goods or services is also less.

Therefore, the breakeven point, which is the point at which total revenue equals total costs, would also decrease. This is because the business would need to sell fewer units of its good or service to cover its costs.

So, the answer is D. Decrease in the breakeven point.

What would be the effect of a decrease in variable costs on the breakeven point? A. Shift in the breakeven point to the left B. Increase in the breakeven point C. No effect on the breakeven point D. Decrease in the breakeven point

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