On January 1, 2020, Randolph Co. increased its direct labor wage rates. All other budgeted costs and revenues were unchanged. How did this increase affect Randolph's budgeted break-even point and budgeted margin of safety? (CPA adapted)
Budgeted Break-even Point Budgeted Margin of Safety
A. Increase Increase
B. Increase Decrease
C. Decrease Decrease
D. Decrease Increase
Multiple Choice
Option A
Option B
Option C
Option D
Answers: 3
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