What would be the effect of each of the following events on a firm’s breakeven point? Indicate the effect in the space provided with a (–) for an increase, a (+) for a decrease, and a (0) for no effect. When answering this question, assume that everything except the change indicated is held
Constant.
a. An increase in the sales price
b. A reduction in variable labor costs
c. A decrease in fixed operating costs
d. Issuing new bonds