6) Belton Company currently sells its products for $25/unit. Management is contemplating a 20% increase in the sale price for the next year. Variable costs are currently $7.50/unit. Fixed expenses are $150,000 per year.

If fixed costs increase 10% next year, and the new sale price per unit goes into effect, how many units will need to be sold to breakeven?

A. 7,333 units

B. 7,857 units

C. 9,429 units

D. 22,000 units

If you prepared an Income Statement at the break-even point for Belton Company in the above Question #6 to check your work, you would see that total fixed costs are always

A. Less than the total contribution margin.

B. Equal to the total contribution margin.

C. More than the total contribution margin.

D. More than the total variable cost.