Managerial accounting: break-even point
Stellar Packaging Products is faced with a decline in demand due to the downsizing of its major customer. Robin Simmons, the companyâ€™s controller, is considering a number of changes, which may affect the companyâ€™s profitability. Explain how the Stellar Packagingâ€™s break-even point would change if (1) the selling price per unit decreased, (2) fixed costs increased throughout the entire range of activity, and (3) variable costs per unit increased.
Write a brief paragraph.