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The relationship between cost-volume-profit suggests that there are four ways by which profit can be increased. These are: Increase unit selling price. Decrease unit variable
The relationship between cost-volume-profit suggests that there are four ways by which profit can be increased. These are: Increase unit selling price. Decrease unit variable cost. Decrease fixed costs. Increase volume. Assume that the current situation for a profit is as follows: Sales volume: 1,000 units Selling price: RM2 each Variable cost: RM1 per unit Fixed costs: RM500 Required: Draw four separate break-even charts showing the effect of the following changes on the current situation: (a) (b) (c) (d) 10% increase in volume. 10% increase in unit selling price. 10% decrease in unit variable cost. 10% reduction in fixed costs. Use your chart to state the additional profit resulting from each change
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