Selling price per unit

$$100$

$$40$

$$60,000$

Variable expenses per unit

Fixed expenses per month

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$ :

Multiple Choice

operating income would decrease.

the breakeven point would decrease.