1) If fixed costs suddenly increase, how will that change the graph of fixed costs if activity, units or volume is on the x-axis and dollars are on the y-axis?
2) Indicate whether the following statement is true or false, then support your view.
If we graphed fixed costs per unit, it would appear as a straight, horizontal line, assuming we have units on the x-axis and dollars on the y-axis.
3) How does depreciation (a fixed cost) impact an organization's break-even point? And by the way, why is depreciation such a unique expense?