Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A business gives the information below: break-even point 4500 units; unit selling price $50; contribution to sales ratio 40%. How will the break-even point change if the unit selling price rises by 10%?

  • Aincreased by 409 units
  • Bdecreased by 409 units
  • Cincreased by 900 units
  • Ddecreased by 900 units

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