Units per month and advertising expense


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.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Units per month and advertising expense
Reference No:- TGS094128

Expected delivery within 24 Hours