The product that Menorah Corp. currently sells, candle operas, has fixed costs of $20,000, a sales price of $10 per candle opera and a variable cost of $4 per candle opera. If the fixed costs were to increase by 8 percent and the sales price and variable costs were to increase by 10 percent, how would the breakeven point in units, the contribution margin per unit, and the contribution margin ratio be affected?
Breakeven point in units
a. Increases
b. Decreases
c. Does not change
d. Cannot be determined