Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 10

Assuming that all other factors remain unchanged, determine how a firm's breakeven point is affected by each of the following:
a. The firm finds it necessary to reduce the price per unit because of increased foreign competition.
b. The firm's direct labor costs are increased as the result of a new labor contract.
c. The Occupational Safety and Health Administration (OSHA) requires the firm to install new ventilating equipment in its plant. (Assume that this action has no effect on worker productivity.)