A product sells for $30 per unit and has variable costs of $16.75 per unit. The fixed costs are $861,250. If the variable costs per unit were to decrease to $15.25 per unit, fixed costs increase to $958,750, and the selling price does not change, break-even point in units would:

Multiple Choice

• Not change.

• Decrease by 21,425.

• Increase by 21,425.

• Equal 6,000.

• Increase by 3,250.