Selling price per unit

Variable expenses per unit $,$$$100$

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 contribution margin ratio would increase.

operating income would decrease.

the breakeven point would decrease.

the breakeven point would increase.