9(B). Butters Corporation recently noticed an increase in its fixed cost. All other costs and

revenues were unchanged. What impact will this have on break-even point and the margin of safety (increase, decrease, or stay the same and why? feel free to make-up numbers to help explain why.

1. Breakeven: _________________ Why:_______________________________________________________________
2. Margin of Safety: _________________ Why:_______________________________________________________________

10. Chef Company makes and sells pre-packed lunches. The variable cost of each lunch is $5. The lunches are sold for $10 each. Fixed operating expenses amount to $10,000. Using the space below, prepare a break-even graph. Indicate the following on the graph: (a) fixed cost, (b) total cost, (c) total revenue, (d) loss, (e) breakeven point, and (f) profit area.