SITUATION 1: A competitor is offering a 10% discount on the selling price of its Blu-ray DVD players. Vargo Video's management must decide whether to offer a similar discount. Question: What effect will a 10% discount on the selling price have on the break-even point for Blu-ray DVD players? SITUATION 2: To meet the threat of foreign competition, management invests in new robotic equipment that will lower the amount of direct labour required to make Blu-ray DVD players. It is estimated that total fixed costs will increase by 30% and that the variable cost per unit will decrease by 30%. Question: What effect will the new equipment have on the sales volume required to break-even? SITUATION 3: Vargo Video's principal supplier of raw materials has just announced a price increase. The higher cost is expected to increase the variable cost of Blu-ray DVD players by $25 per unit. Management would keep the same selling price for the Blu-ray DVD players. It plans a cost cutting program that will save $17.500 in fixed costs per month. Vargo Video is currently realizing monthly operating income before taxes of $80.000 on sales of 1.400 Blu-ray DVD players. Question: What increase in units sold will Vargo need to maintain the same level of operating income