Chocco Co produces a single product and the following information is available. $ Selling price per unit

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Chocco Co produces a single product and the following information is available.

$

Selling price per unit 28 Variable cost per unit 13 Fixed overheads 105,000 The breakeven point was calculated using these figures but management have decided that the variable cost and selling price will rise by 1.9% and 5% respectively.

What will happen to the breakeven point when the new cost and price are taken into account?

A It will rise by 7.14% C It will fall by 7.14%

B It will rise by 1.14% D It will fall by 1.14%

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