Open Interactive Illustration 2 from the assigned reading. Using the sliders, enter a hypothetical revenue per unit (r), variable cost per unit (v), and total fixed costs (C). The graph will display the output required to fully cover the firm's fixed costs in that scenario- breakeven volume. Analyze the changes and answer the following:

1. How does a change in total fixed costs (C) affect the breakeven point?

2. What happens when the variable cost per unit (v) approaches revenue per unit (r)? Why?