In the middle of the year, the price of Lake Corporation”s major raw material increased by 8%. How would this increase affect the company”s break-even point and margin of safety?
|
|
Break-even point |
Margin of safety |
|
A) |
Increase |
Increase |
|
B) |
Increase |
Decrease |
|
C) |
Decrease |
Decrease |
|
D) |
Decrease |
Increase |