The income statement for Fellows, Inc., is as follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses295,200 $650,000 240,000 $410,000 Operating income $114,800 Fellows produces and sells a single product. The income statement is based on sales of 100,000 units Required 1. Compute the break-even point in units and in revenues. 2. Suppose that the selling price increases by 10 percent. Will the break-even point increase or decrease? Recompute it. $0.35. Will the break-even point increase or decrease? Recompute it. selling price and the unit variable cost increase? Recompute the break-even point 3. Ignoring Requirement 2, suppose that the variable cost per unit increases by 4. Can you predict whether the break-even point increases or decreases if both the 5. Assume that total fixed costs increase by $50,000. (Assume no other changes from incorporating both of the changes in Requirements 2 and 3. the original data.) Will the break-even point increase or decrease? Recompute it