Indicate the effect (increase, decrease, no change, or not enough information) that each of the following situations
Question:
Indicate the effect (increase, decrease, no change, or not enough information) that each of the following situations has on break-even unit sales. If you answer 'not enough information', list the information that you need in order to be able to determine the effect.
a A retail business purchases price tags to use in place of the stickers it has used in the past.
b An athletic equipment store leases more retail space.
c A bakery increases its advertising expenditure.
d A merchandiser plans to increase the selling price of its product. To counteract potential decreases in sales, the merchandiser also plans to increase the amount of per-product commission that the sales staff earn.
e An accounting firm plans to increase its billing rate per hour.
f A retail business has found a supplier that will provide the same merchandise its old supplier provided, but at a lower price.
g A private boarding school in Sydney installs air conditioning in its dormitories.
h A retail business reduces advertising expenses and increases the commissions of its sales force.
i Instead of having its office building cleaned by a cleaning service, a business plans to hire its own cleaning crew.
Step by Step Answer:
Accounting Information For Business Decisions
ISBN: 9780170253703
2nd Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons