Stellar Packaging Products is faced with a decline in demand due to the downsizing of its major customer. Robin Simmons, the company’s controller, is considering a number of changes, which may affect the company’s profitability. Explain how the Stellar Packaging’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.
For this discussion:
- Support your position.