Never Late Delivery currently delivers packages for $9 each. The variable cost is $3 per package, and fixed costs are $60,000 per month. Compute the break-even point in both sales dollars and units under each of the following independent assumptions. Comment on why the break-even points are different.

a. The costs and selling price are as just given.

b. Fixed costs are increased to $75,000.

c. Selling price is increased by 10%. (Fixed costs are $60,000.)

d. Variable cost is increased to $4.50 per unit. (Fixed costs are $60,000 and selling price is $9.)

Best Eastern Motel is a regional motel chain. Its rooms rent for $100 per night, on average.  kj4