8 The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020? A $150 Decrease $250 Decrease C. $110 Increase $250 Increase E. $510 Increase B. D 10 Orange Company produces E-Reader. The following cost information from last year is available: Fixed cost $6 per unit Variable cost $45 per unit Selling price $60 per unit Units sold 20,000 units The company is considering a higher resolution of display. The use of higher resolution display would result in the following: Increase in variable cost $3 per unit Elimination of one quality inspector whose annual salary is $39.000 Annual sales in units will increase to 24,000 units If the company uses the higher resolution display this year, what is the impact on its break-even point in unit sales? (Round the answer to the nearest unit.) A. Break-even point in unit sales will decrease by 2,000 units B. Break-even point in unit sales will decrease by 2,600 units C. Break-even point in unit sales will decrease by 1.250 units D. Break-even point in unit sales will decrease by 4.400 units E. Break-even point in unit sales will increase by 6,750 units