Question
G30 makes and sells magnets (a single product). For each of the following changes, indicate whether the break-even point increases (i.e., break even would occur
G30 makes and sells magnets (a single product). For each of the following changes, indicate whether the break-even point increases (i.e., break even would occur at a higher volume of sales), decreases (i.e., break even would occur at a lower volume of sales), unchanged (i.e., break even stays the same), or cannot be determined from the information given. Assume that nothing changes except the given item(s).
1. Total Fixed Cost Decreases
2. Variable Cost per unit Decreases and Selling Price per unit Increases
3. Variable Cost per unit Increases and Total Fixed Costs Increase
A. Unchanged B. Decreases C. Cannot be determined D. Increases
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