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A product sells for $30 per unit and has variable costs of $17.50 per unit. The fixed costs are $775,000. If the variable costs per
A product sells for $30 per unit and has variable costs of $17.50 per unit. The fixed costs are $775,000. If the variable costs per unit were to decrease to $15.10 per unit, fixed costs increase to $923,800, and the selling price does not change, break-even point in units would:
Multiple Choice
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Equal 6,000.
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Increase by 4,960.
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Decrease by 20,575.
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Not change.
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Increase by 20,575.
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