Goldstone Company is studying the impact of the following:
An increase in sales price on the break-even point.
2.A decrease in fixed costs on the contribution margin.
3.An increase in the contribution margin on the break-even point.
4.A decrease in the variable cost per unit on the sales volume needed to achieve Goldstone's $68,000 target profit.
5.An increase in sales commissions on the contribution margin and the break-even point.
6.A decrease in anticipated advertising outlays on fixed cost and the break-even point.
Required:
Determine the impact of these operating changes (increase,decrease,no effect)on the item(s)noted.
Correct Answer:
Verified
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