Benson Company produces flash drives for computers which have variable costs of $10 per flash drive...
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Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive sells for $20 each. During the current month, 1,000 flash drives were sold. Fixed costs for the current month were $4,500. If variable costs increase by 10%, what happens to the breakeven level in units for the month for Benson Company? O It is 10% higher than the original breakeven point. It depends on the number of units the company expects to produce and sell. O It is 10% lower than the original breakeven point. O It increases by 50 units. Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive sells for $20 each. During the current month, 1,000 flash drives were sold. Fixed costs for the current month were $4,500. If variable costs increase by 10%, what happens to the breakeven level in units for the month for Benson Company? O It is 10% higher than the original breakeven point. It depends on the number of units the company expects to produce and sell. O It is 10% lower than the original breakeven point. O It increases by 50 units.
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Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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