Question $1$

What would be the BEP in units sales if the company decides to:

Increase the Sales Price from $$100$ to $$105$ by spending annually $$5000$ for

advertisement.

Question $2$

What would be the BEP in units sales if the company decides to:

Increase the Sales Price from $$100$ to $$105$ and cutting the fixed salary of the salespeople

by $$15000$ and instead provides them $$10$ per unit commission?Question $3$

Which one of the following options provides better units BEP for the company?

Option A:

Increase the Sales Price from $$100$ to $$105$ by spending annually $$5000$ for

advertisement.

Option B:

Increase the Sales Price from $$100$ to $$105$ and cutting the fixed salary of the salespeople

by $$15000$ and instead provides them $$10$ per unit commission.

Option A

Option B

Both options are same

None of the OptionsUse the available pick lists from within the three boxed areas

to change values, noting how the break$-$even units change

within the green$-$shaded area. Think critically about why the

changes in break$-$even units are occuring based on your

revised assumptions.