Suppose the Sales Price Per Unit Increases

question 75

Multiple Choice

Suppose the sales price per unit increases. What will be the effect on the break-even point in units?

• A) The units will increase.
• B) The units will decrease.
• C) The units will remain the same.
• D) The units will remain the same; however, contribution per unit will decrease.

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Definitions:

Cash Receipts

A record of all money coming into a business, indicating the company's inflow of cash from its various activities.

Sales Clerk

An employee typically found in a retail environment responsible for assisting customers, processing transactions, and organizing products.

Accounting Controls

Processes and procedures implemented by a company to ensure the accuracy and integrity of its financial statements and to prevent fraud.

Internal Control Measures

Procedures and policies implemented by a corporation to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.