A Company Increased the Selling Price for Its Product from $1.00

Multiple Choice

A company increased the selling price for its product from $1.00 to $1.20 a unit when total fixed costs increased from $400,000 to $450,000 and variable cost per unit remained unchanged.How would these changes affect the break-even point?

A) The break-even point in units would be increased.
B) The break-even point in units would be decreased.
C) The break-even point in units would remain unchanged.
D) The effect cannot be determined from the information given.