# Cost Behavior and Cost Volume Profit Analysis

5. Halter Inc.'s unit selling price is $70, the unit variable costs are $45, fixed costs are $150,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units?

$125,000 decrease

$175,000 increase

$75,000 increase

$125,000 increase

6. If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $5?

6,000 units and 5,250 units

18,000 units and 6,000 units

18,000 units and 15,000 units

9,000 units and 15,000 units

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#### Solution Preview

5. Halter Inc.'s unit selling price is $70, the unit variable costs are $45, fixed costs are $150,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units? (Points: 7)

$125,000 decrease

$175,000 increase

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#### Solution Summary

This discusses the Cost Behavior and Cost Volume Profit Analysis