Assuming that all other factors remain unchanged, determine how a ?rmŠs break-even point is affected by

| November 24, 2016
  • 2. Assuming that all other factors remain unchanged, determine how a ?rmŠs break-even point is affected by each of the following: (a) The ?rm ?nds it necessary to reduce the price per unit because of increased foreign competition. (b) The ?rm’s direct labor costs are increased as the result of a new labor contract. (c) The Occupational Safety and Health Administration (OSHA) requires the ?rm to install new ventilating equipment in its plant. (Assume that this action has no effect on worker productivity.)
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