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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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 |
Â
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
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