On January 1, Lake Corporation increased its management salaries. All other costs and revenues were unchanged. How

Question:

On January 1, Lake Corporation increased its management salaries. All other costs and revenues were unchanged. How did this increase affect Lake's break-even point and margin of safety?

Break-even point Margin of safety

a. Increase Increase

b. Increase Decrease

c. Decrease Decrease

d. Decrease Increase

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...