3. On Jan. 1, 2021, Lake Co. increased its direct manufacturing labor wage rates. All other budgeted costs and revenues were unchanged. How did this increase affect Luke's budgeted break-even point and budgeted margin of safety? Budgeted Break-even Point Budgeted Margin of Safety Increase Increase a. b. Increase Decrease Decrease Decrease с. d. Decrease Increase

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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3. On Jan. 1, 2021, Lake Co. increased its direct manufacturing labor wage rates. All other
budgeted costs and revenues were unchanged. How did this increase affect Luke's budgeted
break-even point and budgeted margin of safety?
Budgeted Break-even Point Budgeted Margin of Safety
Increase
Increase
a.
b.
Increase
Decrease
Decrease
Decrease
с.
d.
Decrease
Increase
Transcribed Image Text:3. On Jan. 1, 2021, Lake Co. increased its direct manufacturing labor wage rates. All other budgeted costs and revenues were unchanged. How did this increase affect Luke's budgeted break-even point and budgeted margin of safety? Budgeted Break-even Point Budgeted Margin of Safety Increase Increase a. b. Increase Decrease Decrease Decrease с. d. Decrease Increase
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