Hatchcox Company is studying the impact of the following:
1.An increase in sales price.
2.An increase in the variable cost per unit.
3.An increase in the number of units sold (note: each unit produces a $6 contribution margin).
4.A decrease in fixed costs.
5.A proposed change in the method of compensation for salespeople,away from commissions based on gross sales dollars and toward higher monthly salaries.
Required:
Determine the impact of each of these operating changes on Hatchcox's per-unit contribution margin and break-even point by completing the chart that follows.Your responses should be Increase (INC),Decrease (DEC),No Effect (NE),or Insufficient Information to Judge (II).

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The Answer of Hatchcox Company is studying the impact of the following:
1.An increase in sales price.
2.An increase in the variable cost per unit.
3.An increase in the number of units sold (note: each unit produces a $6 contribution margin).
4.A decrease in fixed costs.
5.A proposed change in the method of compensation for salespeople,away from commissions based on gross sales dollars and toward higher monthly salaries.
Required:
Determine the impact of each of these operating changes on Hatchcox's per-unit contribution margin and break-even point by completing the chart that follows.Your responses should be Increase (INC),Decrease (DEC),No Effect (NE),or Insufficient Information to Judge (II).

Hatchcox Company Is Studying the Impact of the Following