Kizspy | Question: 46
(Choose 1 answer)
A company increased the selling price for its product from USD5 to $6 per unit when total fixed expenses
increased from USD100,000 to USD200,000 and variable expense per unit remained unchanged. How would
these changes affect the break-even point?
A. The break-even point in units would increase.
B. The break-even point in units would decrease.
C. The break-even point in units would remain unchanged.
D. The effect cannot be determined from the information given.