Question: The purchasing manager for Rockwell Fashion Bags has been able
The purchasing manager for Rockwell Fashion Bags has been able to purchase the material for its signature handbags for $2 less per bag. Keeping everything else the same, what effect would this reduction in material cost have on the break-even point for Rockwell Fashion Bags? Now assume that the sales manager decides to reduce the selling price of each handbag by $2. What would the net effect of both of these changes be on the break-even point in units for Rockwell Fashion Bags?
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