A product sells for $30 per unit and has variable costs of $15.75 per unit. The fixed costs are $1,011,750. If the variable costs per unit were to decrease to $14.40 per unit, fixed costs increase to $1,107,600, and the selling price does not change, break-even point in units would:

Multiple Choice

• Increase by 24,289.

• Not change.

• Increase by 3,195.

• Equal 6,000.

• Decrease by 24,289.