Graph the following on your own paper. At the original position, the break-even point in sales dollars is $24,000 at 500 units. The fixed costs are $8,000.

Assume the slope of the sales line is equal to the selling price. When the two points of the sales line are at the origin and the break-even point, you see that the slope of the line is $48, which means that the selling price is $.

When the two points of the total costs line are at the origin and the break-even point, you see that the slope of the line is $32.00, which means that the variable cost per unit is $.

Leave the break-even point (x) at its original position. Use it as a reference point to answer the following questions. Analyze the scenarios by sliding the points on the lines to get the slope desired. Recall that the new break-even point for each scenario exists where the sales and total costs lines intersect. Compare it to the original break-even point (x). (You may want to put the lines back to their original position for each scenario.)

https://cxp-cdn.cengage.info/protected/prod/assets/d1/7/d17b3608-8ae3-4c2e-abde-79c282810e1e.png?__gda__=st=1601240323~exp=1601845123~acl=%2fprotected%2fprod%2fassets%2fd1%2f7%2fd17b3608-8ae3-4c2e-abde-79c282810e1e.png*~hmac=7ea43ae4f08300a33fd6eccb9e87e697d0be43c5df9cf1b1156502c9e9f02621