Microsoft Word - MidtermSpring2011_Solution

5. Winsor Inc. has planned to increase factory manager salary by 10%. If selling prices and all other cost are held constant, the break-even point

a.decreases at rate higher than 10%

b.decreases at a rate lower than 10%.

c.increases at rate higher than 10%

d.increases at a rate lower than 10%.

e.None of the above.

Why is the answer D?