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10) Evans Company has estimated the following amounts for its next fiscal year: Total fixed expenses $832,500 Sale price per unit 40 Variable expenses per
10) Evans Company has estimated the following amounts for its next fiscal year:
Total fixed expenses | $832,500 |
Sale price per unit | 40 |
Variable expenses per unit | 25 |
What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $22,500?
A) The breakeven point will decrease by 562 units.
B) The breakeven point will decrease by 1,500 units.
C) The breakeven point will decrease by 900 units.
D) The breakeven point will increase by 562 units.
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