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A CVP graph such as the one shown below is a useful technique for showing relationships among organization's costs, volume, and profits.
A CVP graph such as the one shown below is a useful technique for showing relationships among organization's costs, volume, and profits. IN the case of the break-even point, state whether the action will cause the break-even point to: Remain unchanged. Increase. Decrease. Probably change, but the direction is uncertain. A. the unit selling price is increased from $18 to $20. B. UNit variable costs are decreased from $12 to $10. C. Fixed costs are increased by $3000 per period. D. Two thousand more units are sold during the period than were budgeted. E. Due to paying salespersons a commission rather than a flat salary, fixed costs are reduced by $8000 per period and unit cost of materials, both unit variable costs are increased by $3. F. Due to an increase in the cost of materials,both unit variable costs and the selling price increased by $2. G. Advertising costs are increased by $10000 per period, resulting in a 10% increase in the number of units sold. H. Due to automating an operation previously done by workers, fixed costs are increased by $12000 per period and unit variable costs are reduced by $4.
