Question: Q1, If the variable cost per unit increases while the selling price per unit and the fixed costs remain the same, how would you expect

Q1, If the variable cost per unit increases while the selling price per unit and the fixed costs remain the same, how would you expect the change in variable costs to affect (i) profit (assuming sales volume unchanged) and (ii) the break-even point?

Select one:

a. Decrease in profit and higher point to break even

b. No effect on profit and breakeven point

c. Increase in profit and higher point to break even

d. Decrease in profit and lower point to break even

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