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If All Other Factors Remain the Same a 20% Increase

Question 24

Multiple Choice

If all other factors remain the same a 20% increase in both the selling price and variable costs of a product will:


A) Lower the company's break-even point in units
B) Raise the company's break-even point in units
C) Have no effect on the company's break-even point in units
D) Cannot be determined without more information

Correct Answer:

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