Use the available pick lists from within the three boxed areasto change values, noting how the break-even units changewithin the green-shaded area. Think critically about why thechanges in break-even units are occuring based on yourrevised assumptions.Sales price per unitVariable costs per unit0Total fixed costBreak-even in units6ABEFOREAFTER100.00$10080.006A$50,0002,5006A8050,0002,500 Question 1 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105by spending annually $5000 for advertisement. Question 2 What would be the BEP in units sales if the companydecides to: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 andinstead provides them $10 per unit commission?Question 3 Which one of the following options provides better unitsBEP for the company? Option A: Increase the Sales Price from $100 to $105 by spending annually $5000 foradvertisement. Option B: 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. Option A Option B Both options are same None of theOptionsUse the available pick lists from within the three boxed areas to change values, noting how the break-evenunits change within the green - shaded area. Think critically about why the changes in break-even units are occuringbased on your revised assumptions.

Variable costs are costs that vary with the change in level of output.Fixed costs are costs that…

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. ales price per unit BEFORE AFTER 100.00 $ 100

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. ales price per unit BEFORE AFTER 100.00 $ 100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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