If a Company Increases Its Selling Price by $2 Per

question 350

Multiple Choice

If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will:

• A) decrease.
• B) increase.
• C) not change.
• D) change but direction cannot be determined.

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Definitions:

Graph

A diagram representing data, relationships, or functions systematically, with lines, bars, or other symbols.

Rebate

A return of part of the original payment for some service or merchandise, serving as a discount or reduction.

Total Revenues

The overall amount of money generated by a business or economic entity from its activities.

Car Dealership

A business establishment that sells new or used cars at the retail level, typically based on a dealership contract with an automaker.