If a company increases its selling price by $2 per unit due to an increase...

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Accounting

If a company increases its selling price by $2 per unit due to an increase in its variable labor
cost of $2 per unit, the break-even point in units will:
a. change but direction cannot be determined.
b. decrease.
c. not change.
d. increase.
Check
Break-even analysis assumes that:
a. Unit fixed expense is constant.
b. Total revenue is constant.
c. Unit variable expense is constant.
d. Selling prices must fall in order to generate more revenue.
Check
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