If a Company Increases Its Selling Price by $2
Not change 9 decrease Increase change but the direction cannot be determined. 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.
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1 Answer to 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.

. If a company increases its selling price by 2 per unit due to an increase in its variablelabor cost of 2 per unit the break-even point in units willA DecreaseB IncreaseC Not changeD Change but direction cannot be determined. D change but direction cannot be determined. D change but direction cannot be determined.
In the case when the company rise its selling price by 2 per unit that results in an increase in variable labor cost of 2 per unit so the break even unit would remain unchanged or same as the contribution margin would remain same or unchanged Therefore there will be no effect Hence the break even point in units will not change. If a company increases its selling price by 2 per. Business Accounting 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 total sales dollars will.
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