* Check My Work Rework the formula above to solve for Fixed Costs: Fixed Costs = Sales - Variable Costs - Operating Income Now consider what happens to this formula when Operating Income is equal to zero. APPLY THE CONCEPTS: Effect of Changes to Sales Price, Variable Costs and Fixed Costs Scenario Scenario 2 After some extensive market research, Koller has determined that a sales price increase of $2 per unit will not affect the sales volume and will be effective immediately. CM per unit: X Break-even units: x units Koller has been experiencing quality problems with materials supplier. Changing suppliers will improve the quality of the product but will cause direct materials costs to increase by $1 per unit. CM per unit: x Break-even units: x units X units Feedback Feedback