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On the cost-volume-profit graph, which of the following would result into an increase in the breakeven point (Assuming other factors remain unchanged)? O a. Increase
On the cost-volume-profit graph, which of the following would result into an increase in the breakeven point (Assuming other factors remain unchanged)? O a. Increase in number of units sold O b. Decrease in selling price per unit c. Decrease in fixed costs d. None of the given answers e. Decrease in variable cost per unit Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $3,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? O a. Increase by $1,000 b. Increase by $2,000 Oc. Decrease by $5,000 d. No change e Decrease by $6,000
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