Accounting Problem: Breakeven Points
• The purchasing manager for Forster's Fashion Bags has been able to purchase the materials for its signature handbags for $3 less per bag. If everything is kept the same, what effect would this reduction in material cost have on the breakeven point for Forster's Fashion Bags?
• Now, assume that the sales manager decides to reduce the selling price of each handbag by $3. What would be the net effect of both changes be on the breakeven point in units for Forster's Fashion Bags?
• Would you recommend a different approach to the purchasing manager if the results are not favorable to the organization? Explain.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.