When Advanced Manufacturing Systems Are Installed, What Effect Does Such

Multiple Choice

When advanced manufacturing systems are installed, what effect does such installation usually have on fixed costs and the break-even point? $\begin{array} { | l | l | l | } \hline & { \text { Fixed Costs } } & { \text { Break-even Point } } \\\hline 1 & \text { Increase } & \text { Increase } \\\hline 2 & \text { Increase } & \text { Decrease } \\\hline 3 & \text { Decrease } & \text { Increase } \\\hline 4 & \text { Decrease } & \text { Decrease } \\\hline 5 & \text { Do not change } & \text { Does not change } \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5