Answer (A) is correct . The breakeven point in units is calculated by dividing total fixed costs by the unit contribution margin. If selling price is constant and costs increase, the unit contribution margin will decline, resulting in an increase of the breakeven point.
Answer (B) is incorrect because A decrease in costs will cause the unit contribution margin to increase, lowering the breakeven point.
Answer (C) is incorrect because An increase in the selling price will increase the unit contribution margin, resulting in a lower breakeven point.
Answer (D) is incorrect because Both a cost decrease and a sales price increase will increase the unit contribution margin, resulting in a lower breakeven point.
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