$160,000 Once sales reach the breakeven point then each additional unit sold will 3 py increase the company's operating leverage. O increase profit by an amount equal to the per unit price. increase fixed cost by a proportionate amount increase profit by an amount equal to the per unit contribution margin. reduce the margin of safety Pennell Company gathered the following information for the year ended December 31, 2018. During the year. Pennell produced and sold 75.000 units of product at a sale price of $6.60 per unit. There was no beginning Pennell Company gathered the following information for the year ended December 31, 2018. During the year, Pennell produced and sold 75,000 units of product at a sale price of $6.60 per unit. There was no beginning inventory of product on January 1, 2018. What is Margin of Safety in units? Fixed costs: Manufacturing Marketing Administrative Variable costs: Manufacturing Marketing Administrative $180,000 55,000 25,000 $112.500 37.500 45,000 10,000 75,000 65,000 45,000 30.000 Apuan Fairfield Company management has budgeted the following amounts for its next fiscal year. If Fairfield Company increases variable expenses by $1 and decreases fixed expenses by $50,000, how will breakeven sales in units be affected? Total fixed expenses Sale price per unit Variable expenses per unit $750,000 $40 $25 No change O Increase by 1,333 units Decrease by 1,500 units Decrease by 1.900 units Decrease by 7,562 units Operating leverage occurs when organization has a pure variable cost structure O Decrease by 7,562 units Operating leverage occurs when 3 puan O organization has a pure variable cost structure. O the organization makes purchases on credit instead of paying cash. management buys enough of the company's shares of stock to take control of the corporation the organization avoids all fixed costs in its operations. small changes in revenue produce large changes in profit. Executive management at Cup of Joe coffee shops is very pessimistic about the chain's ability to maintain current sales volume and estimates of the next six years. Decrease in the company's the organization avoids all fixed costs in its operations. small changes in revenue produce large changes in profit. 3 puan Executive management at Cup of Joe coffee shops is very pessimistic about the chain's ability to maintain current sales volume and estimates decreases in sales in each of the next six years. Decrease in the company's profit will be minimum if management creates a(n): O low leverage cost structure. cost structure does not affect decrease in profit. O high leverage cost structure. O medium leverage cost structure. O operating leverage does not affect decrease in profit