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Sampson Lighting is faced with a decline in demand due to the downsizing of its major customer. Lindsey Rhodes, the company's controller, is considering a
Sampson Lighting is faced with a decline in demand due to the downsizing of its major customer. Lindsey Rhodes, the company's controller, is considering a number of changes which may affect the company's profitability. Explain how Sampson Lighting's break-even point would change if:
The selling price per unit decrease.
Fixed costs increased throughout the entire range of activity.
Sales people were now compensated on 75% commission and 25% salary and opposed to 75% salary and 25% commission as they were prior.
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