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Pearson Enterprises management has budgeted the following amounts for its next fiscal year, Total fixed expenses $705.000 Selling price per unit $38 Variable expenses per
Pearson Enterprises management has budgeted the following amounts for its next fiscal year, Total fixed expenses $705.000 Selling price per unit $38 Variable expenses per unit $27 if Pearson Enterprises can reduce fixed expenses by 517,600, how will breakeven sales in units be affected? Decrease by 271 units Increase by 1600 units Decrease by 1600 units None of the items in this list of answers. 4P Alpine Stove Company has two product lines: Gas Stoves and Wood stoves. Income statement data for the most recent year is shown below: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490.000 355.000 135.000 76.000 $59.000 Gas $345.000 235.000 110,000 38.000 $172.000 Wood $145,000 120.000 25,000 38.000 ($13.000 Assume that fixed costs remain unchanged. How would discontinuing the Wood stove product line affect operating income? Increase in total operating income of $24,000 Increase in total operating income of $13,000 Decrease in total operating income of $25,000 Decrease in total operating income of $145,000
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