Bruce Company Recently Reduced Its Advertising Budget

Short Answer

Bruce Company recently reduced its advertising budget. All other costs and revenues were unchanged. Select the response that indicates the impact of the advertising cuts on the company's break-even point and margin of safety. $\begin{array}{ll}\text { Breakeven Point } & \text { Margin of Safety }\\\text { A) Increase } & \text { Increase } \\\text { B) Decrease } & \text { Decrease } \\\text { C) Increase } & \text { Decrease } \\\text { D) Decrease } & \text { Increase }\end{array}$