For a given firm, if management decides to decrease the unit production cost (a variable cost) by investing in additional equipment and automation (a fixed cost), which below statement is correct?

a. The break-even point will decrease, likely resulting in less operating risk for the firm.

b. The break-even point will increase, likely resulting in additional financial risk for the firm

c. The break-even point will decrease, likely resulting in less financial risk for the firm.

d. The break-even point will increase, likely resulting in additional operating risk for the firm

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct statement is c The breakeve... View the full answer