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  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

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    Polytechnic State University
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Category > Accounting Posted 07 May 2017 My Price 5.00

Given the following information

5. Given the following information, if the selling price per unit were to drop $2, from $100 to $98, the sales volume were to increase 500 units to 4,500 units per month, and advertising expenses were to increase by $1,000, what would happen:

Selling price per unit

$100

Variable expenses per unit

$40

Fixed expenses per month

$60,000

 

a. The break-even point would increase

b. The break-even point would decrease

c. The contribution margin ratio would increase

d. Operating income would decrease

Answers

(8)
Status NEW Posted 07 May 2017 10:05 AM My Price 5.00

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Attachments

file 1494151261-2259844_1_636297264266906699_2259844.xlsx preview (101 words )
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