If a company decreases the variable expense per unit while increasing the total fixed expenses, the...

If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will:

shift upward and have a steeper slope.

shift downward and have a steeper slope.

shift upward and have a flatter slope.

shift downward and have a flatter slope.

Solutions

Expert Solution

Solution:

Answer : Option with "shift upward and have a flatter slope." is the Correct Option.

Explaination:

When there will be rise in fixed cost the Total expenses will be shift upward and decrease in variable cost will counter equate the the line in respect with fixed cost , and therefore the slope will get flatter. Therefore option with Shift ypwrd and have flatter slope will be the correct option.

ekkarill92 answered 2 years ago

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