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If the sales price per unit increases because of competition but the cost structure remains the...

If the sales price per unit increases because of competition but the cost structure remains the same

the degree of combined leverage rises

All of the options are true.

the breakeven point declines

the degree of financial leverage rises

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If the sales price per unit increases because of competition but the cost structure remains the same

Answer

the degree of combined leverage rises and the degree of financial leverage rises.

If the sales price per unit increases because of competition but the cost structure remains the same then the breakeven point will increase or rise. At the same time the degree of combined and financial leverage will not decline. It will increase.

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