1. If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), does the breakeven point increase or decrease?

2. Using Break Even Analysis, provide a unique mathematical example to support you answer.

(Calculate the breakeven point for a base example, then increase the selling price and re-calculate your breakeven point.) Label all numbers in your examples.

20 points overall. 4 points for part one, 8 points for the base example in part two, 8 points for the example showing the changes in part 2.