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 variable expense per unit remained unchanged. How would these changes affect the break-even point?
A) The break-even point in units would decrease.
B) The break-even point in units would increase.
C) The break-even point in units would remain unchanged.
D) The effect cannot be determined from the information given.
Correct Answer:
Verified
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