1. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement? 2. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission? 3. Which one of the following options provides better units BEP for the company? Option A: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement OptionB: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission. a) option A b) option B c) both options are same d) None of the options
1. What would be the BEP in units sales if the company decides to:
Increase the sales price from $100 to $105 by spending annually $5000 for advertisement?
2. What would be the BEP in units sales if the company decides to:
Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission?
3. Which one of the following options provides better units BEP for the company?
Option A:
Increase the sales price from $100 to $105 by spending annually $5000 for advertisement
OptionB:
Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission.
a) option A
b) option B
c) both options are same
d) None of the options
![Use the available pick lists from within the three boxed areas to change values,
noting how the break-even units change within the green-shaded area. Think
critically about why the changes in break-even units are occuring based on your
revised assumptions.
Sales price per unit
Variable costs per unit
Total fixed cost
Break-even in units
BEFORE
100
80
50,000
2,500
AFTER
100
80
50,000
2,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8405573e-2943-4acf-a481-eeb81581db1e%2F35e7e509-2728-4bab-92e8-2baa8ee6094f%2F8nn8hlt_processed.jpeg&w=3840&q=75)
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