If All Other Factors Remain the Same, a 20% Increase

Multiple Choice

If all other factors remain the same, a 20% increase in both the selling price and variable costs of a product will:

A) raise the company's break-even point in units.
B) lower the company's break-even point in units.
C) cannot be determined without more information.
D) have no effect on the company's break-even point in units.