Saturday, July 9, 2011

A company increased the selling price for its product from $5 to $6 per unit when total fixed expenses increased from $100,000 to $200,000

ACCOUNTING

Multiple Choice

A company increased the selling price for its product from $5 to $6 per unit when total fixed expenses increased from $100,000 to $200,000 and variable expense per unit remained unchanged. How would these changes affect the break-even point?

A. The effect can't be determined from the information given.
B. The break-even point in units would increase.
C. The break-even point in units would remain unchanged.
D. The break-even point in units would decrease.

Click here for the SOLUTION

No comments:

Post a Comment