1. Identify the numbered components in the CVP graph.
2. State the effect of each of the following actions on line 3, line 9, and the break-even point.

1. The unit selling price is increased from $18 to $20.
2. Unit variable expenses are decreased from $12 to $10.
3. Fixed expenses are increased by $3,000 per period.
4. Two thousand more units are sold during the period than were budgeted.
5. Due to paying salespersons a commission rather than a flat salary, fixed expenses are reduced by $8,000 per period and unit variable expenses are increased by $3.
6. Due to an increase in the cost of materials, both unit variable expenses and the selling price are increased by $2.
7. Advertising costs are increased by $10,000 per period, resulting in a 10% increase in the number of units sold.
8. Due to automating an operation previously done by workers, fixed expenses are increased by $12,000 per period and unit variable expenses are reduced by $4.