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5. Mae Company sells its product for $12 per unit and has variable costs of S8 per unit. Total fixed costs are $60,000. Suppose variable
5. Mae Company sells its product for $12 per unit and has variable costs of S8 per unit. Total fixed costs are $60,000. Suppose variable costs increase by 10% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units? A) Increase from 15,000 units to 18,750 units B) Decrease from 3,000 units to 2,885 units od olm C) Decrease from 15,000 units to 5,357 units D) Decrease from 7,500 units to 6,818 units
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