Ask Experts Questions for FREE Help!
 

Free Answers in 3 Easy Steps

Register Now
3 Steps
 


Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 

Laura2880
Nov 23, 2008, 04:19 PM
when fixed costs decrease, what does this do for sales?

ASKnRECIEVE
Nov 23, 2008, 06:33 PM
Fixed costs are expenses that dont change, such as rent expense, phone expense (if same month-to-month), etc. These expenses do not have a direction relationship to sales.

With variable costs, such as advertising expenses, you can possibly identify a relationship. Increasing advertising expense, increases sales.

So to answer your questions, when fixed costs decrease, this does nothing for sales. It does however increase net profit.