10. Suppose ABC COMPANY makes the following changes in its cost structure: variable costs USE THE FOLLOWING FOR QUESTIONS 7--10: increase by $3/ unit and fixed costs decrease 30%. What will be the effect on the breakeven point in units? HINT: Using the original data, first calculate the old breakeven point. A. Increase by 2,100 units B Increase by 2,000 units C. Increase by 2,200 units D. Increase by 2,300 units 11. Assuming a constant mix of 3 units of Small for every 2 units of Large. 7. For ABC COMPANY, how many units have to be sold in order to earn an after-tax net income of $18,000 ? a. 21,750 b. 21,000 c. 21,250 The breakeven point in combined units of Small \& Large would be d. 21,500 8. For ABC COMPANY, using one of the short-cut tricks that you learned, assuming the sales a. 4,300 units decrease by 25%, what would be the decrease in net income? b. 4,325 units a. $50,000 c. 4,350 units b. $60,000 d. 4,375 units c. $40,000 d. $80,000