When fixed costs decrease, it generally has a positive impact on sales. This is because lower fixed costs often lead to lower prices for goods or services, making them more appealing and affordable to potential customers. Lower prices can attract new customers and encourage existing customers to make repeat purchases, thereby boosting sales. Additionally, reduced fixed costs may also allow companies to invest in marketing or promotional activities, which can further stimulate sales growth. Therefore, the decrease in fixed costs creates favorable conditions for increased sales.
