Final answer:
When fixed costs rise while other variables stay constant, the break-even point rises because more revenue is needed to cover the increased costs. The impact on the degree of operating leverage and total profit is not definitively determined without additional information on revenue and variable costs behavior.
Step-by-step explanation:
When fixed costs rise while other variables stay constant, the break-even point rises because the amount of revenue needed to cover all costs including the increased fixed costs is higher. The degree of operating leverage does not necessarily increase simply with a rise in fixed costs; it depends on how changes in revenue affect profits. Since operating leverage is about the ratio of fixed costs to variable costs, without knowing the behavior of revenues or variable costs, we cannot determine the effect on the degree of operating leverage.
Lastly, whether total profit declines depends on the firm's ability to maintain or increase prices to cover the higher fixed costs. If prices cannot be increased, then indeed, total profit could decline as fixed costs eat a larger portion of the revenue.
Given this context, the correct answer to the student's question is that if fixed costs rise while other variables stay constant, the break-even point rises. This is because the firm will require more revenue to cover the increased costs before it can begin to make a profit. Options B and C could potentially be correct depending on the firm's response to the increased costs, but they are not definitively so based on the information given.