If the selling price per unit were to drop 2 from 100 to 98, Ask an Expert

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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 break-even point would increase.

B) the break-even point would decrease.

C) the contribution margin ratio would increase.

D) operating income would decrease.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M964564

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