8 (A) IF THE SELLING PRICE DECREASED, THEN CHANGE IN SALES. THE DEGR...

6-8 (a) If the selling price decreased, then

change in sales. The degree of operating lever-

the total revenue line would rise less steeply,

age at a given level of sales is computed by di-

and the break-even point would occur at a

viding the contribution margin at that level of

higher unit volume. (b) If fixed costs increased,

sales by the net operating income.

then both the fixed cost line and the total cost

line would shift upward and the break-even