Required:1. Identify the numbered components in the CVP graph.2. State the effect of each of the following actions on line 3 line 9 and the break-even point. For line 3 and line 9 state whether the action will cause the line to:Remain unchanged.Shift upward.Shift downward.Have a steeper slope (i.e. rotate upward).Have a flatter slope (i.e. rotate downward).Shift upward and have a steeper slope.Shift upward and have a flatter slope.Shift downward and have a steeper slope.Shift downward and have a flatter slope.In the case of the break-even point state whether the action will cause the break-even point to:Remain unchanged.Increase.Decrease.Probably change but the direction is uncertain. Treat each case independently.x. Example. Fixed costs are reduced by $5000 per period. Answer (see choices above): Line 3: Shift downward.Line 9: Remain unchanged.Break-even point: Decrease.a. The unit selling price is increased from $18 to $20.b. Unit variable costs are decreased from $12 to $10.c. Fixed costs are increased by $3000 per period.d. Two thousand more units arc sold during the period than were budgeted.e. Due to paying salespersons a commission rather than a flat salary fixed costs are reduced by $8000 per period and unit variable costs arc increased by $3.f. Due to an increase in the cost of materials both unit variable costs and the selling price are increased by $2.g. Advertising costs are increased by $10000 per period resulting in a 10% increase in the number of units sold.h. Due to automating an operation previously done by workers fixed costs are increased by $12000 per period and unit variable costs are reduced by$4.
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