Question

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______.

a.shift downward and have a steeper slope.
b.shift downward and have a flatter slope.
c.shift upward and have a flatter slope.
d.shift upward and have a steeper slope.

Answer 1

The answer is letter C.

Step-by-step explanation:

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 flatter slope.___.