If the Selling Price Per Unit Were to Drop $2

question 34

Multiple Choice

$$\begin{array} { ll } \text { Selling price per unit } & \$ 100 \\\text { Variable expenses per unit } & \$ 40 \\\text { Fixed expenses per month } & \$ 60,000\end{array}$$ If the selling price per unit were to drop $2, from $100 to $98, the sales volume were to increase 500 units to 4,500 units per month, and advertising expense were to increase by $1,000:

• A)the breakeven point would increase.
• B)the breakeven point would decrease.
• C)the contribution margin ratio would increase.
• D)operating income would decrease.

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Definitions:

Rough-And-Tumble Play

A form of play that involves physical activities like running, tumbling, chasing, and play fighting, important for social and physical development.

Gross Motor Skills

The abilities required to control the large muscles of the body for walking, jumping, running, and other physical activities.

Fine Balance

The state of achieving harmony or equilibrium among varying elements or aspects of a situation or environment.

Motor Skills

Abilities required to control and coordinate the movements of the body's muscles for tasks like walking, grabbing, or speaking.