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:
A) the breakeven point would increase.
B) the breakeven point would decrease.
C) the contribution margin ratio would increase.
D) operating income would decrease.
Correct Answer:
Verified
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