Q. What effect would have on the break-even point and expected profit if there is an increase in sales expense?

• (A) (increase, increase)
• (B) if a project incurs an operating loss (a negative taxable income) during a typical tax year, the firm pays no income taxes during that year.
• (C) whenever a project requires an investment in working capital, the profitability of the project will be affected negatively.
• (D) all of the above