Final answer:
A decrease in the sales price in the basic cost-volume-profit model would increase the break-even volume.
Step-by-step explanation:
In the basic cost-volume-profit model, a decrease in the sales price would result in a recomputation of the gross profit per unit. This is because the gross profit per unit is calculated by subtracting the unit variable cost from the unit sales price.
However, a decrease in the sales price would not be offset by an increase in unit costs. Unit costs are separate from the sales price and a decrease in the sales price does not necessarily mean an increase in unit costs.
Instead, a decrease in the sales price would increase the break-even volume. The break-even volume is the quantity of units that must be sold in order to cover all costs and achieve zero profit. When the sales price decreases, more units must be sold to reach the break-even point.