Indicate the effect (increase, decrease, no change, or notenough information) that each of the following situations has onbreak-even unit sales. If you answer “not
enough information,” list the information that you need in order tobe able to deter-mine the effect.
(a) A retail company purchases price tags to use in place of thestickers it has used in the past.
(b) An athletic equipment store leases more retail space.
(c) A bakery increases its advertising expense
(d) A merchandiser plans to increase the selling price of itsproduct. To counter potential decreases in sales, the merchandiseralso plans to increase the amount of per-product commission thatthe sales staff earns.
(e) An accounting firm plans to increase its billing rate per hour.(f) A retail company has found a supplier that will provide thesame merchandise its old supplier provided, but at a lowerprice.
(g) A private college in the Northwest installs air conditioning inits dormitories. (h) A retail company reduces advertising expensesand increases the commissions of its sales force.
(i) Instead of having its office building cleaned by a cleaningservice, a company plans to hire its own cleaning crew.
Will be rated. Thanks.
