5. CVP Analysis (20 points) 1. If variable expenses increase as a percentage of the selling price, will it result in a higher or lower breakeven point? - (5) 2. Currently a company is selling 8,000 units per month for $100 per unit. Fixed costs are $180,000 and their contribution margin is 30%. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales volume. How many units would have to be sold at this new selling price to generate an operating income of $15,000 per month? __ __(15)