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How would the changes affect the break-even point

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Reference no: EM132514582

Question 1: A company increased the selling price for its product from $6 to $7 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?

Option 1: The break-even point in units would remain unchanged.

Option 2: The effect cannot be determined from the information given.

Option 3: The break-even point in units would decrease.

Option 4: The break-even point in units would increase

Reference no: EM132514582

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