[Laura2880]

When fixed osts decrease, what does this do for sales? I really just need an example.

[ASKnRECIEVE]

Fixed costs are expenses that don't 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.