Assume total fixed costs are expected to increase by $40,000 from the original plan and all other factors remain unchanged. How would this expected increase in total fixed costs affect the breakeven point in units for Palmy Company? How would the percentage change

in the breakeven point compared to the percentage increase in fixed costs? What general conclusion can you draw on the basis of these calculations? Justify your answers with supportive calculations.

Use the following information to answer Q7Q9. Palmy Company sells two types of printers Standard and Deluxe. The following table shows the unit selling prices and unit variable costs for each of the product The company has total fixed costs of $400,000 a year