Calle Company is studying the impact of the following: 1. An increase in sales price.2. An increase in the variable cost per unit.3. An increase in the number of units sold (note: each unit produces a $6 contribution margin).4. A decrease in fixed costs.5. A proposed change in the method of compensation for salespeople, away from commissions based on gross sales dollars and toward higher monthly salaries.Required: Determine the impact of each of these operating changes on Calle's per-unit contribution margin and break-even point by completing the chart that follows. Your responses should be Increase (INC), Decrease (DEC), No Effect (NE), or Insufficient Information to Judge (II).?Per-Unit Contribution MarginBreak-Even Point1.??2.??3.??4.??5.??
What will be an ideal response?
| ? | Per-Unit Contribution Margin | Break-Even Point |
| 1. | INC | DEC |
| 2. | DEC | INC |
| 3. | NE | NE |
| 4. | NE | DEC |
| 5. | INC | II |
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