Goldstone Company Is Studying the Impact of the Following

question 63

Essay

Goldstone Company is studying the impact of the following:
1. An increase in sales price on the break-even point.
2. A decrease in fixed costs on the contribution margin.
3. An increase in the contribution margin on the break-even point.
4. A decrease in the variable cost per unit on the sales volume needed to achieve Goldstone's $68,000 target profit.
5. An increase in sales commissions on the contribution margin and the break-even point.
6. A decrease in anticipated advertising outlays on fixed cost and the break-even point.
Required:
Determine the impact of these operating changes (increase, decrease, no effect) on the item(s) noted.

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Definitions:

Machiavellianism

A personality trait that involves manipulativeness, a lack of empathy, and a focus on self-interest and deception to achieve one's goals.

Personality Characteristic

A trait or quality that contributes to the unique emotional and behavioral features of an individual.

External Locus of Control

The belief that one's outcomes in life are determined by external forces or chance rather than personal actions.

Internal Locus of Control

A psychological concept referring to individuals who believe that they have control over the events and outcomes in their lives, as opposed to external forces determining their fate.