Question: Consider the following statements: I. All other things the same, an increase in the variable expense per unit will increase the break - even point.

Consider the following statements:
I. All other things the same, an increase in the variable expense per unit will increase the break-
even point.
II. For a capital intensive automated company, fixed costs will tend to be higher compared
to a less capital intensive company with the same sales.
a. I is true; II is true
b. I is true; II is false
c. I is false; II is true
d. I is false; II is false

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