5 NO. A 10% DECREASE IN THE SELLING PRICE POINT WOULD OCCUR AT A HIG...

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