A company increased the selling price for its product from $1.00 to $1.10 a unit when total fixed expenses increased from $400,000 to $480,000 and the variable expense per unit remained unchanged at $0.50. How would these changes affect the break-even point in units?
The break-even point in units would increase. |
The break-even point in units would decrease. |
The break-even point in units would remain unchanged. |
The effect cannot be determined from the information given. |
Answer to the above question is shown.
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