Changes in Break-Even Points with Changes in Unit Prices Cassius produces and sells novelty items for resort gift shops. Last year, Cassius sold 99,200 units. The income statement for Cassius, Inc., for last year is as follows: $992,000 Sales 545,600 Less: Variable expenses Contribution margin $446,400 Less: Fixed expenses 180,000 Operating income $266,400 Required: 1. Compute the break-even point in units and in revenues, Break-even units Break-even revenue Compute the margin of safety in sales revenue for last year, 2. Suppose that the selling price increases by 6 percent. Will the break-even point increase or decrease? 1. Compute the break-even point in units and in revenues. Break-even units a Break-even revenue Compute the margin of safety in sales revenue for last year. 2. Suppose that the selling price increases by 6 percent. Will the break-even point increase or decrease? Recompute the break-even point in units. Round your answer to the nearest whole unit. units 3. Suppose that the variable cost per unit increases by $0.20. Will the break-even point increase or decrease? Recompute the break-even point in units. Round your answer to the nearest whole unit. units 4. Can you predict whether the break-even point increases or decreases if both the selling price and the unit variable cost increase? Recompute the break-even point in units. Round your answer to the nearest whole unit. units 3. Suppose that the variable cost per unit increases by $0.20. Will the break-even point increase or decrease? Recompute the break-even point in units. Round your answer to the nearest whole unit. units 4. Can you predict whether the break-even point increases or decreases if both the selling price and the unit variable cost increase? Recompute the break-even point in units incorporating both of the changes in Requirements 2 and 3. Round your answer to the nearest whole unit. units 5. Assume that total fixed costs decrease by $12,000. (Assume no other changes from the original data.) Will the break-even point increase or decrease? Recompute the break-even point in units. Round your answer to the nearest whole unit. units