Use the available pick lists from within the three boxed areas to change values, noting how the break-even units change within the green-shaded area. Think critically about why the changes in break-even units are occuring based on your revised assumptions. Sales price per unit Variable costs per unit Total fixed cost Break-even in units BEFORE 100 80 50,000 2,500 a) option A b) option B c) both options are same d) None of the options AFTER 100 80 50,000 2,500 1. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement? 2. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission? 3. Which one of the following options provides better units BEP for the company? Option A: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement OptionB: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission.

Use the available pick lists from within the three boxed areas to change values, noting how the break-even units change within the green-shaded area. Think critically about why the changes in break-even units are occuring based on your revised assumptions. Sales price per unit Variable costs per unit Total fixed cost Break-even in units BEFORE 100 80 50,000 2,500 a) option A b) option B c) both options are same d) None of the options AFTER 100 80 50,000 2,500 1. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement? 2. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission? 3. Which one of the following options provides better units BEP for the company? Option A: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement OptionB: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 30P: Suppose a new production method will be implemented if a hypothesis test supports the conclusion...

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