6-5 No. A 10% decrease in the selling price
point would occur at a higher unit volume. (c) If
will have a greater impact on profits than a 10%
the variable costs increased, then the total cost
increase in variable expenses, since the selling
line would rise more steeply and the break-even
price is a larger figure than the variable ex-
point would occur at a higher unit volume.
penses. Mathematically, the same percentage
applied to a larger base will yield a larger result.
In addition, the selling price affects how much
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