Final answer:
The break-even point would decrease with the given changes, the contribution margin ratio would remain the same, and the change in operating income cannot be determined.
Step-by-step explanation:
To calculate total revenue, multiply the selling price per unit by the volume. In this case, the selling price per unit is $100 and the volume is 4,500, so the total revenue would be $100 * 4,500 = $450,000. To calculate the new total variable expenses, which would be the variable expenses per unit multiplied by the volume, we multiply $40 by 4,500, giving us $180,000. The new fixed expenses would remain the same at $60,000.
We can calculate the break-even point by dividing the fixed expenses by the contribution margin ratio. The contribution margin ratio represents the percentage of revenue that covers the fixed expenses and contributes to profit. It is calculated by subtracting the variable expenses per unit from the selling price per unit, and then dividing by the selling price per unit. In this case, the contribution margin ratio would be ($100 - $40) / $100 = 0.6 or 60%. The break-even point would then be $60,000 / 0.6 = $100,000, meaning the break-even point would decrease with the given changes.
The contribution margin ratio does not change with these changes, as it is only dependent on the selling price per unit and the variable expenses per unit. Therefore, option (c) is incorrect. Operating income is calculated by subtracting the total expenses (fixed and variable) from the total revenue. With the given changes, the total revenue and total expenses would increase, but the change in operating income cannot be determined without the exact values of the new total revenue and expenses. Therefore, option (d) cannot be determined.