On January 1,2016,Randolph Co A) Option a
B) Option B
C) Option C
D)

Multiple Choice

On January 1,2016,Randolph Co.increased its direct labor wage rates.All other budgeted costs and revenues were unchanged.How did this increase affect Randolph's budgeted break-even point and budgeted margin of safety? (CPA adapted) $$\begin{array} { | c | c | c | } \hline & \text { Buogeted Break-oren } & \text { Budgeted Margin of } \\\text { Point } & \text { Safety } \\\text { A. } & \text { Increase } & \text { Increase } \\\hline \text { B. } & \text { Increase } & \text { Decrease } \\\hline \text { C. } & \text { Decrease } & \text { Decrease } \\\hline \text { D. } & \text { Decrease } & \text { Increase } \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D