Question 1) Would each of the following increase, decrease, or have an indeterminant effect on a firm's breakeven point (unit sales)?
a. An increase in the sales price with no changes in unit cost?
b. An increase in fixed costs accompanied by a decrease in variable cost?
c. A new firm deices to use MACRS depreciation for both book and tax purposes rather than the straight-line depreciation method.
Question 2) Why do public utilities generally use different capital structures than drug companies?