we 46 If a company experiences a LULU... level of sales? line gets steeper, assuming no change to the total expense line? What is the impact on the best even level of sales if the slope of the total expenses line gets steeper, assuming no change to fa expenses or to the slope of the total revenue line? 4-9 What effect would an increase in the income tax rate from 25% to 30% have on the break-even levey sales (dollars or units), assuming no change to price per unit, variable cost per unit, or fixed expens 4-10 What is meant by the term cost structure? 4-11 Companies X and Y are in the same industry. Company X is highly automated, whereas Coma Y relies primarily on labour to make its products. If sales and total expenses in the two compari. are about the same, which company would you expect to have the lower margin of safety? Why 4-12 How is the weighted average contribution margin per unit calculated for companies that sell or more products? 4-13 Assume that Company Z, which sells two products, has changed its sales mix so that it selu higher proportion of the product with the higher CM. What will be the impact on the break- level of sales? Explain your answer. 4-8 In a CVP graph, what is the impact on the break-even level of sales if the slope of the total we 46 If a company experiences a LULU... level of sales? line gets steeper, assuming no change to the total expense line? What is the impact on the best even level of sales if the slope of the total expenses line gets steeper, assuming no change to fa expenses or to the slope of the total revenue line? 4-9 What effect would an increase in the income tax rate from 25% to 30% have on the break-even levey sales (dollars or units), assuming no change to price per unit, variable cost per unit, or fixed expens 4-10 What is meant by the term cost structure? 4-11 Companies X and Y are in the same industry. Company X is highly automated, whereas Coma Y relies primarily on labour to make its products. If sales and total expenses in the two compari. are about the same, which company would you expect to have the lower margin of safety? Why 4-12 How is the weighted average contribution margin per unit calculated for companies that sell or more products? 4-13 Assume that Company Z, which sells two products, has changed its sales mix so that it selu higher proportion of the product with the higher CM. What will be the impact on the break- level of sales? Explain your answer. 4-8 In a CVP graph, what is the impact on the break-even level of sales if the slope of the total
