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Pop Inc. is a company that produces Bluetooth speakers. They expect their variable labor...

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Accounting

Pop Inc. is a company that produces Bluetooth speakers. They expect their variable labor cost to increase by $13 per unit next month. They also plan to in ease their selling price by $12 per unit.

They do not expect hny changes in fixed costs.

What will happen to their break-even point, in terms of the number of units required to break even? Will it decrease, increase, or remain the same?

A. Stay the same (no changel: the break-even point will occur at the same number of units as before

B. Decrease: they won't need to sell as many units to break even

c. Increase: they will need to sell more units to break even

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