Kaito Corporation is a firm that produces a single product. The company is predicting a price increase in its product next year. Assume that this price increase will not cause sales volume to change, and that there are no changes to variable costs or fixed costs. Which of the following is true about the effect of this price increase on Contribution Margin (CM) per unit and break even point?

Group of answer choices

CM per unit will increase; break even point will decrease

CM per unit will decrease; break even point will decrease

CM per unit will increase; break even point will increase

CM per unit will decrease; break even point will increase