Problem: 1 Woodley Corporation management has budgeted the following amounts for its next fiscal year: Total fixed expenses $500,000 Sale price per unit $1,000 Variable expenses per unit$600 Requirements: 1. If Woodley Corporation can reduce fixed expenses by $20,000, how will break- even sales in units be affected? 2. If Woodley Corporation spends an additional $15,000 on advertising, sales volume should increase by 1,000 units. What effect will this have on operating income? 3. If Woodley Corporation can reduce fixed expenses by $50,000, by how much can variable expenses per unit increase and still allow the company to maintain the original break-even sales in units? 4. If fixed expenses increase by 20%, to maintain the original break even sales in units, what would be the sale price per unit have to be