Selling price per unit$ $100$Variable expenses per unit$ $40$Fixed expenses per month$ $60,000$

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

the breakeven point would decrease.

the contribution margin ratio would increase.

operating income would decrease.

the breakeven point would increase.