A company increased the selling price for its product from $1.00 to $1.20 a unit when total fixed costs increased from $400,00 . to $450,00 . 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.
b
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