Woodley Corporation management has budgeted the following amounts ...

[ARLKQ]

Woodley Corporation management has budgeted the following amounts for its next fiscal year:

Total fixed expenses

$500,000

Sale price per unit	$1,000
Variable expenses per unit	$600

Requirements:

1.	If Woodley Corporation can reduce fixed expenses by $20,000, how will break-even sales in

units be affected?

2.	If Woodley Corporation spends an additional $15,000 on advertising, sales volume should

increase by 1,000 units. What effect will this have on operating income?

3.	If Woodley Corporation can reduce fixed expenses by $50,000, by how much can variable

expenses per unit increase and still allow the company to maintain the original break-even sales in units?

4.	If fixed expenses increase by 20%, to maintain the original break-even sales in units, what

would be the sale price per unit have to be?

[smrtceo]

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[StephanieK09]

Thank you!